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Long Island City life sciences building sells for $86.9M after $6M loss
The 43-10 23rd St. Queens deal centers on a discounted purchase and comes amid NYC life sciences vacancy of 37% at the end of Q1, according to JLL.
Longfellow Real Estate Partners sold the Hatch Life Sciences Building at 43-10 23rd St. in Long Island City to Pearl Realty Management for $86.9M, according to property records cited by Bisnow.
The sale price reflects a roughly $6M loss versus what Longfellow paid in 2021, when it acquired the 215,000 SF building for $92.5M after partnering with Sculptor Real Estate, Bisnow reports. The partners later redeveloped the former parachute manufacturing factory into life sciences space from August 2022 through September 2023, according to Crain's New York Business and other reporting summarized by Bisnow.
Bisnow notes the transaction could be structured as a deed-in-lieu-of-foreclosure, because Pearl Realty had purchased the building's debt from its former lender, Affinius Capital. The outlet also ties the loss to pressure on New York City's life sciences market, where JLL reported the city had the highest availability rate among U.S. life sciences markets at 37% at the end of Q1.
The same New York deal roundup also includes other purchases, including CW Realty Group buying a Downtown Brooklyn residential development site at 55 Smith St. for $58M from Edison Properties, and YS Developers and Rabsky Group acquiring a Bedford-Stuyvesant residential development site at 1150 Broadway for $23.5M, Bisnow says, citing local deal coverage and releases.