Quadrum Global, Baron Property Group & Simon Development Sell Waterfront Site in LIC to ZD Jasper for $47M

A joint venture involving Quadrum Global, Baron Property Group, and Simon Development has decided to sell a development site in Long Island City, Queens, after facing challenges for almost a decade. The site, located at 45-40 Vernon Boulevard, currently houses an abandoned building known as the Paragon Paint Factory.

Sale Details and Profit Margin

ZD Jasper Realty purchased the site for $47 million, as reported by brokers JLL. Despite the failure to materialize a 28-story housing project due to community resistance since 2016, the sellers are likely to make a profit, having acquired the site for $14.6 million in 2013.

Development Plans and Setbacks

The joint venture initially proposed a 23-story building with 226 units in 2022, highlighting increased costs due to environmental remediations. Despite local opposition, the New York City Board of Standards and Appeals approved a zoning variance in June 2023. However, the project did not progress further, and ZD Jasper Realty, the new owner, plans to develop housing on the site, with specifics yet to be disclosed.

Future Development Prospects

Any new plans must adhere to the BSA-approved requirements for 192,000 square feet of development. JLL, representing both buyer and seller, views the site as prime for waterfront development, filling a gap in the local market for quality homes near public transit and amenities.

Property Value and Surroundings

Despite Amazon's scrapped HQ2 plans in 2019, the property remains valuable due to its proximity to the East River and Gantry State Park. JLL emphasizes the site's potential for attracting residents and visitors.

Additional Development Ventures by ZD Jasper

ZD Jasper Realty has other development projects underway, including the acquisition of Papaya King's former location at 179 East 86th Street for $24.5 million, with plans for a 17-story multifamily building.

The sale of the Queens site marks the end of a lengthy endeavor for the joint venture, while presenting new opportunities for ZD Jasper Realty to contribute to the area's development landscape.