The Real Deal New York

SunCap sells FedEx lot in Queens for $29M

Two-acre parcel next to large LIC distribution center last traded hands for $8M
By Mark Maurer | July 16, 2014 01:10PM

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.

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.