December 1, 2022

McKenzielee Blog

Wicked Clever House Experts

NYC Industrial Real Estate Still Irresistible for Investors

3 min read

Clockwise from left: 2250 59th Street in Brooklyn, 249-26 Northern Boulevard in Douglaston, Queens and 906 Wortman Avenue in Brooklyn (Google Maps)

Investor appetite for industrial property is insatiable. The once-drab asset has proven electric since the pandemic accelerated the shift toward online shopping and fast delivery. Institutional investor Blackstone Group, industrial giant Prologis and developer Rockefeller Group each bought warehouse, factory or industrial development parcels in the city last week for more than $20 million.

Manhattan accounted for most of the investment sales last week in the $10 million to $40 million range with six deals. Brooklyn had three and Queens had two. The mid-market sales totaled $251 million, comparable to the $259 million in the week before the Christmas holiday.

Notable deals included an office property in Mapleton, Brooklyn, and a grocery building in Douglaston, Queens. Here are more details.

1. Blackstone bought a 112,800-square-foot factory building at 906 Wortman Avenue in New Lots, Brooklyn, for $35.5 million. An affiliate of Coda Resources sold the property, which is also known as 906 Alabama Avenue.

2. Royal Builders sold a 52,500-square-foot office building at 2250 59th Street, in Brooklyn for $30 million. An anonymous limited liability company bought the property, which is in Mapleton, an area between Bensonhurst and Midwood.

3. Asian grocery store JMart bought a 36,400-square-foot former Stop & Shop from Colin Development at 249-26 Northern Boulevard in Douglaston, Queens, for $30 million.

4. Prologis bought a 31,500-square-foot warehouse at 280 Johnson Avenue in East Williamsburg for $27.5 million. The industrial giant owns the nearby 23,900-square-foot 512 Johnson Avenue. Babureddy Mareddy was the seller.

5. Rybak Development bought a 8,800-square-foot retail building from James Biagi at 656 Lexington Avenue in Midtown for $24.4 million.

6. A retail building spanning 5,000 square feet at 1530 Third Avenue in Carnegie Hill on the Upper East Side sold for $21 million. Imperial Sterling, which has owned the property since 1988, conveyed the property to an anonymous limited liability company.

7. David Weiss bought a 40,000-square-foot, mixed-use building at 84-42 Smedley Street in Briarwood for $20.3 million through Woodwise LLC. Jack Shaoul sold the Queens building, which has 45 residential units.

8. RWN Management bought a 9,350-square-foot, mixed-use building at 147 Grand Street in Soho for $16.1 million. Empire Capital Holdings https://empirecapitalholdings.com/ was the seller.

9. An affiliate of Jamestown Properties bought a 11,500-square-foot, mixed-use building at 801 Greenwich Street and a 5,900-square-foot residential building at 803 Greenwich Street in the West Village for a combined $16.1 million. The seller was Mark Family Realty LLC.

10. Reda Holdings bought a 12,600-square-foot, mixed-use building at 10 Fifth Avenue in Greenwich Village for $15 million. Benchmark Real Estate Group sold the property. Michael Ferrara of Brax Realty brokered the sale.

11. Phillips International sold a 34,900-square-foot commercial condo unit at 30 Rector Street in the Financial District for $15 million. Zalman Goldman, through MZ Rector LLC, was the buyer.

Outside of the city, Rockefeller Group bought two parcels in Woodbury, Long Island, for a combined $21.25 million. RXR sold 1 Media Crossway for $10.25 million and E&M Ice Cream sold 200 Crossways Park Drive West for $11 million. Joseph Barretta and John Dileonardo of Metro Net Realty brokered the sale.

Rockefeller plans to build a 150,000-square-foot, last-mile distribution center on the sites, which span nearly nine acres near the Long Island Expressway.

https://therealdeal.com/2021/12/28/industrial-buyers-cant-stop-wont-stop/