SunCap sells FedEx lot in Queens for $29M

Two-acre parcel next to large LIC distribution center last traded hands for $8M

From left: FedEx distribution center on Borden Avenue in Queens and SunCap's Flint McNaughton
From left: FedEx distribution center on Borden Avenue in Queens and SunCap's Flint McNaughton

Long Island-based real estate investment trust GTJ REIT paid $28.5 million for a 1.9-acre Queens parking lot leased by FedEx, according to property records filed with the city yesterday.

FedEx currently leases the 84,000-square-foot parking lot at 28-20 Borden Avenue, near an elevated strip of the Long Island Expressway in Long Island City, through 2027. The lot is next to a 10-acre distribution center operated by the package delivery company.

North Carolina-based SunCap Property Group has owned the land since 2011. The firm, along with investor Charlie Zaharia, paid $8.1 million for the site. That same year, FedEx signed leases for two large lots on Borden Avenue. The site at 28-20 Borden Avenue had previously housed an 80,000-square-foot property leased to Spring Scaffolding.

SunCap then developed a $56 million FedEx Ground distribution center at 29-01 Borden Avenue boasting 143,000 square feet. SunCap continues to own the site of the distribution center.

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Brokers Justin DiMare and Kenneth Zakin of Newmark Grubb Knight Frank represented the seller in the deal.

In February, SunCap and Midtown Manhattan-based Parkwill Management acquired a vacant, 428,550-square-foot parcel in Brooklyn’s East New York neighborhood for $40 million with plans to develop a FedEx distribution center, as The Real Deal reported.

SunCap and GTJ could not be immediately reached for comment.