Real Estate BY ANGELA MATUA City seeks developers to continue construction of Hunters Point South The city is calling on developers to submit plans for two parcels at the Hunters Point South development site along the Long Island City waterfront. Parcels F and G on the 30-acre site are located on the southern tip of the development. The city’s request for proposals (RFP) is seeking a plan that includes at least 750 mixed-income apartments, 60 percent of which must be affordable. In addition, developers are asked to include retail and community space. The affordable units must also serve very-low and low-income households and the city will give preference to proposals that incorporate a higher percentage of affordable units. When complete, the development will be the largest affordable housing unit built in New York City since the 1970s. Parcels A and B were constructed in 2013 and are now known as Hunters Point South Commons and Hunters Point South Crossing, respectively. They include 924 permanently affordable units, 17,000 square feet of retail space and a new 1,100-seat intermediate/ high school. TF Cornerstone is currently developing the land on Parcel C. Parcel F is bordered by Center Boulevard, 56th Avenue and 57th Avenue and is approximately 32,484 square feet. The School Construction Authority will develop a public school on this parcel. Parents who live in the rapidly expanding neighborhood have repeatedly expressed concerns about the lack of schools in the area and Councilman Jimmy Van Bramer negotiated with the developers to build an additional 600- seat school there. Parcel G is approximately 28,703 square feet and is located on the east side of 2nd Street and 57th Avenue. Developers will also have to incorporate ground-floor retail and/or community facility space along Center Boulevard and are encouraged to add arts and cultural use. The proposal for parcel “F” must include a publicly accessible open area. The RFP submission period will end on Sept. 4. “Hunters Point South is a once-in-a-generation opportunity to create a neighborhood from the ground-up – and we are not shying away from the challenge,” Deputy Mayor Alicia Glen said. State of Retail: JUNE 2016 You know retail business (in your borough and your city) is either in trouble or undergoing some tectonic market adjustments, when: A) the nearest Barnes & Nobles, already across the river, at 53rd and 3rd, is closing – this after Queens had lost all of its last B&N’s in 2015 (when Bayside & Forest Hills locations were turned into Home Goods and Target, respectively; B) an amazing, floor-to-ceiling, corner location, next to a subway (at 1 Vernon Jackson condo), after 6 years of holding out vacant to get the perfect tenant ends up dividing the space and renting to… a hair salon?!; C) the strongest offers you get on your retail (ground floor, good traffic location, storefronttype setup) listings continue to come from e-commerce and wholesale/showroom, or office use businesses (i.e. real estate offices), and not from traditional retailers; or D) all of the above? (Answer below.) It is old news, I know, but the continued struggle to justify paying retail-level commercial rents that traditional retailers like brick and mortar stores, food markets, restaurants or gyms have been experiencing for years now, is somewhat confounding. Internet shopping and streaming have been around for way over a decade, and we have been through at least two downturns, yet retail business on average, continues its downward spiral. Friends who were laid off from their exciting jobs for big retail brands and colleagues (retail brokers) whose clients continue to downsize, repurpose or restructure stores can attest to it. Not one small retail business owner that I talk to on Vernon Boulevard or on Steinway Street, or Queens Blvd tells me that business is better now than before. With all the new development along these popular streets in the past decade, one would expect that things eventually turn around. Sure, there are bar and restaurant owners who say they do very well, but all of these are relatively new to the business and never knew what it was like in the 90s and before. Ah, the good old times? Are the rents of $80-$110 per square foot in the best spots of Astoria-LICSunnyside sustainable? And who is to blame if they are not? Landlords or the economy? A furniture store tenant in one of properties we manage came to my office today, and asked if there was a side street, warehouse location he could relocate to, despite having years left on his current retail location lease. His lease was drafted in 2011, during the downturn, at $12 per sq ft, and is up to $13.50 by now. “Sure,” I said. “We have a bare warehouse for you on a side street, but the best deal price I see there is over $20 per sq ft, and you’ll need to invest at least $100,000 in AC and finishes just to make it presentable as a showroom.” If he moves out, we will put his space on the market at $45 per sq ft, more if we divide it and recommend the landlord updates the space. That is a 300-plus percent increase in price in 5 years. “I know we can get it,” I told him, even though I believe the landlord would be happy with $35 with minimal investment in renovations. So, you see, sometimes it’s not the “greedy landlord” that everyone blames for running up the prices. Sometimes it’s the ambitious broker whose goal is to achieve rents not necessarily sustainable for business or in line with what the retail location can earn for its occupants. Sometimes it’s the price we think we can get you for your property, and with the right amount of marketing, moxie and deal making, sometimes we get it! One of the local restaurants that continues to grow in popularity, picks up new awards, and “does well now” is John Brown Smokehouse. Its founder and chef de cuisine can be found jamming with his Blues Band on Mondays evenings – a nice reminder that when you are passionate about something, and a nice guy, all you have to do is work hard, and customers will come to support you. It helps if your business happens to be serving delicious food and craft beers on tap, of course, as retail has always been about riding the trend of the moment - and authentic BBQ, locally made brews, and outdoor dining - are definitely “in” today, in a big way. Answer to question in first paragraph: D) David Dynak is a real estate broker at First Pioneer Properties and an LIC resident. He’s lived in Western Queens since 1993.
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