A Maryland-based logistics real estate company paid $115 million for Modell’s warehouse in the Bronx.
Realterm Logistics bought 1500 Bassett Avenue in Morris Park, a 366,000-square-foot distribution center situated on a 17-acre lot. The company, headquartered in Annapolis, specializes in high-flow through facilities for the transportation industry.
Earlier this year, Crain’s reported that the sports apparel chain was in talks to sell its Bronx warehouse. At the time, the buyer and the exact price of the deal were not clear.
Brian Dowling, vice president of asset management at Realterm, said the property will serve as a “final mile” distribution center, delivering goods to the five boroughs, Westchester, Long Island and Connecticut. Modell’s is still leasing the facility, and it’s not yet clear if the company will continue to do so. CBRE’s Brad Cohen, Jacob Tzfanya and Jon Kamali represented Modell’s in the sale.
Demand for industrial space, particularly last mile, has climbed dramatically in the past few years. According to a report by CBRE, the availability rate for warehouse space hit 7.7 percent in the third quarter of 2018, the lowest seen in 18 years.