The Real Deal New York

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

Logistics company had signed a ground lease for the site last year
By Mary Diduch | December 24, 2018 03:30PM

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.