The Real Deal New York

Prologis’ $265M Queens deal falls apart

American Realty Advisors is now negotiating to buy Maspeth site on 57th Avenue
February 23, 2018 04:00PM

Prologis backed out of its deal to pay $265 million for a massive FedEx warehouse in Queens.

A new buyer, the Los Angeles-based investment firm American Realty Advisors, is now negotiating to acquire the 350,000-square-foot site at a similar price, according to Crain’s.

Prologis is one of the largest owners of industrial real estate in the country, but its bid collapsed thanks to a recent decline in the company’s share price. It had offered seller Suncap Property Group stock as part of its deal, but the market’s recent volatility had caused those shares to lose value. They are currently trading for just over $61, higher than a year ago but lower than the $65 they hit late in January when the deal was first reported.

Cushman’s Adam Spies and Doug Harmon are brokering the deal.

North Carolina-based Suncap bought the property at 57th Avenue along Newtown Creek when it was vacant and developed the land as a warehouse property for FedEx. The deal with Prologis would have been one of the largest in city history at a time when demand for industrial space is increasing thanks to logistics and e-commerce companies. [Crain’s]Eddie Small