UPS just bought a gargantuan Red Hook site for $303M

Logistics company had signed a ground lease for the site last year

TRD New York /
Dec.December 24, 2018 03:30 PM

Aerial of waterfront site in Red Hook (Credit: Google Maps)

UPS bought an industrial site in Brooklyn that it had leased just last year and will likely be the site of a new distribution center.

The shipping and logistics company bought a group of six waterfront parcels in Red Hook for $303 million from New Jersey-based industrial landlord Sitex Group, according to a city filing recorded Monday. The site offers up to 1.2 million buildable square feet.

UPS in June 2017 had signed a ground lease for the Red Hook site. That year it also signed a lease for a 475,000-square-foot warehouse at 50-02 55th Avenue in Maspeth, Queens.

“UPS continually evaluates where and how to best expand our facilities to meet growing customer demand,” said Matthew O’Connor, UPS spokesperson, in an email. “The Brooklyn, NY property is one of the locations UPS is considering to further optimize our ground network across the Northeast. The property acquisition is one of many initial steps in the feasibility and planning process for the proposed project.”

Sitex did not immediately return a request for comment.

The acquisition comes amid a nationwide growth in demand for warehouse and distribution space, thanks to the rise of e-commerce.

Est4te Four had wanted to build a mixed-use office complex on the site. Instead, the Italian developer in 2017 sold the parcels to Sitex for $110 million.

The parcels UPS acquired are at 44 Ferris Street, 219 Sullivan Street, 100 Ferris Street, 242 Coffey Street, 68 Ferris Street and 300 Coffey Street.


Related Articles

arrow_forward_ios
Blackstone's Jonathan Gray (iStock, Getty)

Blackstone says goodbye to CMBS fund

Blackstone says goodbye to CMBS fund
22-15 31st Street (Google Maps)

Supermarket signals demise as Target eyes Astoria

Supermarket signals demise as Target eyes Astoria
Danny Meyer (USHG, iStock)

Danny Meyer’s USHG got $11M+ in PPP cash

Danny Meyer’s USHG got $11M+ in PPP cash
Mayor Bill de Blasio (Getty, Wikimedia)

Landlords challenge city laws protecting non-paying businesses

Landlords challenge city laws protecting non-paying businesses
From left: G.H. Palmer's Geoffrey Palme, RFR Holdings' Aby Rosen, Macklowe Properties' Harry Macklowe, Thor Equities' Joseph Sitt and Ellicott Development's Carl Paladino (Getty, iStock)

Harry Macklowe, Aby Rosen and Joe Sitt among 6,500+ developers, landlords who got PPP bucks

Harry Macklowe, Aby Rosen and Joe Sitt among 6,500+ developers, landlords who got PPP bucks
Photo illustration of Ryan Serhant and  22-43 Jackson Avenue (Getty, Trader Joe's) 

Trader Joe’s to open in LIC early next year

Trader Joe’s to open in LIC early next year
Shawn Mobley (left), is being replaced by Andrew McDonald (right) as CEO of the Americas at Cushman

Shakeup at Cushman: Mobley out, McDonald promoted

Shakeup at Cushman: Mobley out, McDonald promoted
(iStock)

To survive, NYC retailers are treating average Joe’s like they’re rich

To survive, NYC retailers are treating average Joe’s like they’re rich
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...