Is Queens/Brooklyn market turning around?

Real Estate Weekly, Dec 15, 1993

Attributing a recent surge in activity to realization on the part of local business people that "the sky hasn't fallen, even though it may have slipped a little bit," Greiner-Maltz Company Chairman Richard Maltz, SIOR, has announced that continued marketing efforts are reaping rewards.

Those with healthy businesses that have been on the fence waiting for "the bottom" are starting to take action and take advantage of today's lower sale and lease prices for commercial spaces, according to Maltz.

The commercial and industrial real estate brokerage firm that specializes in Brooklyn and Queens reviewed its recent transactions and saw some interesting trends. In Queens, the firm completed 11 transactions, involving over 255,000 square feet, with aggregate value in excess of $4.5 million. Explaining the predominance of small deals, Maltz notes, "New York is a city of small businesses, and we have been seeing their strength solidify in the past few years. Small businesses are always able to beat the big guys to the punch. Large space users contemplating the same conditions may be preparing to take similar actions, it just takes them longer to react."

Greiner-Maltz has its own headquarters in Long Island City, which is still the hub of distribution for the metropolitan region. Within the past quarter in Long Island City, firm brokers have concluded transactions involving over 155,000 square feet, with an aggregate value in excess of $2.5 million.

Dick Maltz noted that these transactions represent the broad variety of businesses that find the area vital to their operations: many involve international trade, others provide services and goods to companies throughout the region.

Of paramount interest and importance to New York City, UNICEF leased over 30,000 square feet at 47-37 32nd Place for storage and warehousing of its archives, in a lease arranged by Peter V. Moreo. The UN agency had spent many months deciding whether to remain in New York and recently agreed to stay and expand its offices in Manhattan; this space will allow it to upgrade its storage facilities to meet future needs.

Ira Sherman and John Vasiliou, as exclusive agents, handled the sale of a 2,900 square-foot building at 52-20 37th Street in Long Island City to Wonton Food, Inc., bakers of fortune cookies.

Another Greiner-Maltz team, Peter Moreo and Charles Baronoff, arranged the lease for Queensboro Cleaners, Inc. at 40-35 24th Street in Long Island City.

Moreo, who himself has been involved in leasing over 115,000 square feet of space in the past quarter, handled the lease of Philip Whitney Ltd., distributors of housewares, to a warehouse at 32-50 Hunters Point Avenue in Long Island City.

Greiner-Maltz representative Decio Baio, as exclusive agent, concluded a transaction for a 6,500 square-foot lease at 38-60 43rd Street to R.P.L. Equipment Company, which handles rental and sales of construction equipment.

Mitsa International, a clothing importer, selected a warehouse unit at 11-30 49th Avenue in Long Island City, near the Queens Midtown Tunnel, to expand its warehousing facilities, previously located in Manhattan. The lease was arranged by Bernard Strauss.

Brooklyn industrial activity has begun to show signs of improvement; although most of the recent transactions are quite small, they are becoming more frequent. Although only 128,000 square feet was involved in six sales and one lease, they involved an aggregate value of approximately $3 million.

The food industry continues to be very significant in Brooklyn. It employs a relatively high percentage of the area's workers and occupies a sizable amount of space. Greiner-Maltz representative Charles Baronoff, as exclusive agent, sold the 25,000 square-foot building at 170 North 11th Street to Maxi International, a food importer. Another food importer, Jin Han Food Products, has purchased the factory building at 71 North 6th Street in a transaction arranged by Michael Piskun.

Not-for-profit organizations are a "hidden" part of the economy, but account for a high percentage of the city's employment and business volume. Frequently, they also involve some unusual and creative real estate arrangements.

A former warehouse at 8702 Ditmas Avenue in Canarsie that was badly deteriorated has been purchased by the Restoration Temple Assembly of God, which will construct a church and school at the site. The transaction was arranged by Charles Baranoff.

In Flatbush, Greiner-Maltz representatives Ira Sherman and John Vasiliou, as exclusive agents for Citicorp, brokered a 12,000 square-foot lease at 887 Flatbush Avenue in the heart of the Flatbush business district to the Church Avenue Merchants Block Association.