Issta Group pays $19.7M to Sela Group for new hotel in Long Island City

Issta Group through the entity Issta 27th Street LLC paid $19.7 million to Sela Group through the entity Sela 27 Street LLC for hotel building at 39-35 27th Street in Long Island City, Queens.
The deal closed on February 24, 2022 and was recorded on March 2, 2022.
The property has 28,350 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $693 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on May 28, 2019, for $9.1 million.
The signatory for Sela Group was Matthew Weinberger. The signatory for Issta Group was Michael Lefkowitz.
Prior to this transaction, the buyer Issta Group had not purchased any other properties and had not sold any properties over the past 24 months.
The seller Sela Group had not purchased any other properties and sold three properties in one transaction for a total of $55 million over the same time period.
The 28,350-square-foot property generated revenue of $2 million or $71 per square foot, according to the most recent income and expense figures.

(402569886) Plans for a 76-unit, 28,350 square-foot R-1 were filed on April 5, 2007 and were permitted on August 31, 2012.
Sela Group was founded by Gal Sela who signed the previous mortgage for the property. Issta Assets is a subsidiary of Issta Group.
In Long Island City, the bulk, or 33 percent of the 66.2 million square feet of built space are residential elevator buildings, with industrial buildings next occupying 30 percent of the space. In sales, Long Island City has 4.2 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the highest in Queens. For development, Long Island City is the 2nd most active neighborhood among other neighborhoods. It had 9.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other hotel buildings in the past 12 months.
On the tax block, the majority, or 38 percent of the 109,834 square feet of built space are 1-4 family buildings, with hotel buildings next occupying 26 percent of the space.

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