Dynamic Star CEO buys Queens Plaza site for $28M

Purchase was financed by Churchill Real Estate

Nov.November 27, 2019 04:30 PM
23-10 Queens Plaza South, Gary Segal and Justin Ehrlich (Credit: Google Maps)

23-10 Queens Plaza South, Gary Segal and Justin Ehrlich (Credit: Google Maps)

The chief executive of Dynamic Star has purchased a building in Long Island City for $27.5 million.

The property, a former Eagle Electric building at 23-10 Queens Plaza South, was acquired by AAGS Holdings LLC, an entity controlled by Gary Segal, who has developed at least four other buildings in Queens Plaza with Dynamic Star, his real estate firm.

The seller was a partnership led by Kevin Maloney’s PMG Holdings.

Segal said he plans to build an office building with retail and cafe space at the property, which spans about 135,000 square feet. The deal works out to about $200 per square foot.

Meridian Capital Group arranged financing from Churchill Real Estate, which provided $29.75 million in debt and took a $250,000 equity stake in the building. As part of the deal, Churchill has a 50 percent profit-sharing agreement at the building, people familiar with the deal said.

“We felt comfortable with the location,” said Justin Ehrlich, Churchill’s managing partner. “And as a fallback, the retail is great, and the neighborhood is getting significantly stronger.”

In a statement, Segal said that building would become a “stimulating addition to the emerging Queens Plaza skyline.”

Through Dynamic Star, Segal is also planning to develop the massive Fordham Landing project in the Bronx along the Harlem River, along with his business partners Penny Lee and Brad Zackson.

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