Criterion Group closes on classic New York City transaction finally closes
Shibber Khan’s Criterion Group has acquired an LIC development site at 22-09 Queens Plaza North and 22-09 41st Avenue from PEC Realty Corporation (AKA Allan Briteway Electrical Contractors) for $79.95 million. The site allows for the development of 557,500 SF, and is located between 22nd and 23rd Streets.
History: The deal went into contract for $70 million in 2014. At the time, both parties agreed that the price would increase to $79.95 million if Khan successfully obtained a zoning change for additional residential space.
There were lawyers… Ultimately, the Department of City Planning opted to rezone the entire area instead of simply permitting a change on this individual site. Subsequently, the seller tried to use this technical difference (i.e. rezoning vs. variance) to try and back out of the deal entirely. The suit was tossed.