The Real Deal New York

HUBB NYC picks up Astoria apartment building in biggest Queens multifamily deal so far this year

Mega Contracting Group and Treeline Companies sell Astoria Central for $75M
By Rich Bockmann | March 14, 2019 03:00PM

A rendering of 31-57 31st Street in Astoria and HUBB NYC’s John McCarthy (Credit: CityRealty and LinkedIn)

In the priciest Queens multifamily deal so far this year, HUBB NYC Properties paid $75 million for a new apartment building in Astoria.

The Midtown-based investment firm purchased the 114 unit Astoria Central property at 31-57 31st Street from Mega Contracting Group and Treeline Companies, sources told The Real Deal.

Jesse Terry, HUBB’s director of acquisitions, said the company was attracted to Astoria’s “long-term desirability” and the quality of the building. He said the property will be a long-term hold.

The purchase price works out to nearly $658,000 per unit for the completely market-rate building. The deal also includes a retail condo and parking garage.

Representatives for Mega Contracting Group and Treeline Companies could not be immediately reached for comment.

A team at JLL of Bob Knakal, Hall Oster, Stephen Palmese and John Hageman brokered the sale. The brokers did not respond to a request for comment.

AIG provided HUBB NYC a $51 million loan to finance the deal. JLL’s Mark Fisher negotiated the debt.

Astoria-based builder Hercules Argyriou’s Mega Contracting teamed up with Treeline Companies – a Brooklyn-based developer founded by CEO Glenn Schor – to develop Astoria Central, which they finished in 2017.

The seven-story, 100,000-square-foot building is just a few steps the Broadway N/W subway stop on 31st Street between Broadway and 31st Avenue. And even though all the units are market rate, the developers were able to secure a 421-a tax exemption for the property before the subsidy program was reformed in 2017. The property also has an ICAP benefit, which gives tax breaks to developers who work on newly constructed commercial spaces.

The deal appears to be the first purchase in Queens for HUBB NYC, which primarily invests in apartments and retail spaces in Manhattan.

The company, headed by president John McCarthy, paid $39 million earlier last year to buy a retail condo just north of Lincoln Center.