June 29, 2016 By Jackie Strawbridge
Two small Hunters Point properties containing a two-story mixed use office building and a one-story garage were scooped up for $10 million earlier this month, according to the agent who brokered the deal.
Brian Pun bought 2-23 Borden Ave. and 2-24 51st Ave., according to broker Wook Chung of Marcus and Millichap. Pun is not new to Long Island City real estate; he is involved in United Construction and Development Group’s CityView Tower project on 44th Drive, which stands to become the tallest building in Queens.
The properties are next door to the Foundry condominium and across the street from the PowerHouse condominium, and a quick walk to Hunters Point South Park and the waterfront.
According to marketing information for the properties, the zoning allows for residential, commercial and community facility uses, and together they come with 20,430 buildable square feet as-of-right.
Nevertheless, Chung stated that Pun does not intend to build on the sites at this time but instead plans to use the existing buildings for his business. Pun is president of Federal Standard Abstract, Inc.
“Based on the price point at what he bought it at, it doesn’t make sense to develop,” he said. “He bought the property for the purpose of using the building the way it is.”
Chung pitched the property to developers and thought the $10 million price was very reasonable.
“When I was marketing the property the majority of the buyers were laughing at that price, that I would never get it. But we got it,” he said. “When the neighborhood gets transformed and everything is all said and done [referring to incoming Hunters Point development], that’s going to look very cheap… after five, 10 years, that area’s going to have significant appreciation.”
The property seller was Gold Seal Limousine, according to Chung.
Pun could not be reached for comment on this story.
They got that price because Pun sold on Van Dam for $20 million and most likely had an exchange to mitigate capital gains. So from Pun’s eyes he retains equity, uses the building for himself in the meantime and any appreciation down the line is his.
Funny. About 25, 30, 35 years ago or more, the same kinds of people posting about how “handsome” that building is or “dream”ing about how cool it would be to own a space like that were quite literally sneering at LIC. Fast forward and that dumpy shithole is a bona fide Taj Mahal in their eyes. What a bunch of mugs.
That answers the question when I stare at the smallest, oldest, industrial buildings in LIC and dream about whether or not I could afford them.
2-23 Borden. A handsome little building. Wish the new stuff going up was as interesting.
So he bought at $480 per buildable square foot. Prime property in Brooklyn these days is going for 50% more. Right now LIC condos are going for what? $1000-$1500 per square foot?
Plenty of room there right now to knock down those buildings and build something new, or just keep it as is, make some contributions to the right politician and in a year or 3 get it rezoned from 20,000 buildable square feet to 40,000 or 50,000 buildable square feet and cut his expense down to $200 per buildable square feet and he’ll look like a genius when he sells condos for $1500 per square foot.
Where in Brooklyn is anyone paying $960 bsf ?
That’s more than Manhattan prices
He won’t even get a blended price of $1500 sq foot for this location. Come on man
Sounds to me like Brian Pun got sucka’d. And can someone please drop kick the hell out of the broker for saying that there will be “significant appreciation” in the next 5-10 years? There is more of a chance of prices dropping than going up in the next 5-10 years.
Really? Guess you are one of these who have rented here for a long time and no sense on real easte. A LOTS condos/ property owners make profit every month more than your salad talk your life!!!!
Sorry dude but the economy (as well as real estate) are cyclical. How long has it been since we’ve had a recession again? I think YOU are the one that is clueless on real estate. Don’t you know that I’m the king of real estate? My name after all is Drumpf after all!
We will probably go through a recession in the next few years but in the long run, Pun will be sitting on some very valuable land.