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.

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Attributes

Building Size

62,650 SF

Stories

Zoning

M3-2

2026 NOI

$1,472,936

WALT

2.34 Years

Media

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.