Over the last cycle, real estate fortunes were made by those who bought NYC land and vacant buildings in areas prime for future. Neighborhoods like Harlem, West Chelsea, andWilliamsburgcome to mind. Today, major institutional players are making the same bet on the Hudson Yards by snapping up land.
However,Manhattan land can come at a hefty price tag which begs the questions: where can the average investor look to buy in NYC today? The answer might not be as glamorous as one might hope, butbuildings inQueens are a very good bet.
Warehouses in northwest Queensare in high demand. They have become a rare commodity due to nearby rezonings, which have eliminated most of the stock. Many of these properties have been converted to residential. As a result, there are dozens of user groups looking to buy with very little to chose from. An, who makes the right purchase, can capitalize on this huge demand.
Massey Knakal Director of Sales Stephen Preuss recently handled the sale of26-60 Borough Place in Woodside,Queens along with Vice President of Sales Swain Weiner. The vacant warehouse sold for $2,250,000 or about $140/SF.
The single story warehouse is approximately 15,989 square feet and sits on a 171' x 89' lot. There are two drive-in entrances and one loading dock. The warehouse, which was delivered vacant, is in turn-key condition. Thebenefits from its close proximity to the Brooklyn Queens Expressway and theGrand Central Parkway.
“We were able to find the perfect user who will benefit from this property's layout and convenient location,” said Stephen. He went on to add that this was after he received two dozen offers. Two dozen offers for aQueenswarehouse! Who would have guessed.
Tom Dononvan, our partner in theQueensoffice, relayed the same experience in a recent warehouse sale that he handled in Maspeth. He said that he received more activity on it then a prime apartment building in the area. Years ago, he said he would have trouble giving it away.
I saw several sales trades in the industrial transfers for under $100/SF inQueens. The average price per square foot in 3Q11 according to our 3Q11 Property Sales Report was $207, with a high of $452/SF. There are definitely profits to be made.