21-01 51st Avenue
21-01 51st Avenue, Long Island City, NY 11101-4526
Marketing description
Jones Lang LaSalle ("JLL") has been retained on an exclusive basis to arrange the sale of a leasehold interest in 21-01 51st Avenue (the "Property"), a 100% leased, stabilized commercial asset on a long-term ground lease in the heart of Long Island City, Queens. The Property totals 62,650 square feet across three floors and generates approximately $1.5 million in NOI, offering investors immediate, stable cash flow from established commercial tenants including Ann Sacks Tile and Stone (luxury tile showroom), STV-NAIK Engineering (infrastructure engineering firm), and Skanska USA Civil Northeast (global construction group). The building has undergone over $12 million in capital improvements, encompassing tenant improvements, new HVAC, elevator modernization with roof-level access, façade and lobby renovations, and full electrical upgrades. The Property further features two loading docks, a fenced private outdoor space at the first floor, and tenant signage rights offering prominent visibility from the I-495 corridor. The Property includes a rooftop billboard sign; however, income from the sign is paid directly to the ground lessor and does not flow through to the leaseholder.
Investment highlights
- Stabilized Commercial Asset On Long-Term Ground Lease :100% leased income-producing property in Long Island City with ~91 years remaining on ground lease. Generates approximately $1.5M NOI with stable cash flow from diversified commercial tenants.
- 100% Leased With Near-Term Value-Add Upside : Fully occupied 62,650 SF with 2.34-year weighted average lease term. Current rents at $36/SF vs. market rates of $45-$50/SF, representing 25-30% upside potential upon lease renewal or new signings.
- Significant Capital Investment & Functional Amenities : Over $12M comprehensive gut renovation including new HVAC, elevators, façade, lobby, and full electrical upgrades. Elevator to roof, fenced outdoor space, dual loading docks, and prominent Route 495 signage rights.
- Diversified Rent Roll Anchored By Established Tenants : Three floors occupied by Ann Sacks Tile and Stone (2,165 SF), STX.MNK Engineering Co/asia SP (infrastructure engineering for Amtrak's East River Tunnel), and Shanska USA Civil Northeast (20,621 SF).
- 15-Year Icap Tax Abatement With Landlord Tax Contribution :ICAP tax abatement through 2038 generates substantial real estate tax savings. Ground lessor contributes to taxes with annual adjustments based on defined income formula.
- Structured Ground Lease With Predictable Rent Escalations : 2018 ground lease features 2% annual compounding escalations through Year 24, then fair market resets in 2042 with 2% annual bumps thereafter, providing predictable cost basis.
- Qualified Opportunity Zone Designation : QZ designation provides eligible investors significant federal tax incentives on capital gains, enhancing returns for qualifying investments.
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