Buy a warehouse. Lease it to Amazon. Triple your money

Sellers MRP Realty and AEW Capital Management bought warehouse for $26M in late 2017

New York /
May.May 10, 2019 01:30 PM
MRP Realty’s Bob Murphy and 1300 Viele Avenue in the Bronx (Credit: Google Maps)

MRP Realty’s Bob Murphy and 1300 Viele Avenue in the Bronx (Credit: Google Maps)

Investors who bought a South Bronx warehouse 16 months ago and then leased it to Amazon have a deal in place to cash out at nearly triple their initial investment.

MRP Realty and AEW Capital Management are in contract to sell the 116,000-square-foot industrial property at 1300 Viele Avenue in the Hunt’s Point section to a high net-worth family for $70 million, sources told The Real Deal.

The contract price works out to about $600 per square foot.

A representative for MRP Realty declined to comment. The identity of the family buying the property wasn’t disclosed. A Cushman & Wakefield team of Adam Spies, Doug Harmon, Kevin Donner, Adam Doneger and Anthony Pasquale negotiated the deal for the sellers.

Washington, D.C.-based MRP Realty teamed up with AEW Capital Management – the $75 billion real estate manager owned by French investment bank Natixis – in late 2017 to buy the two-building warehouse complex taking up a full block at 1300 Viele and 1301 Ryawa Avenues for $25.6 million.

The partners poured about $6 million into renovating the properties, and last year leased them to Amazon for the company’s first last-mile distribution center in the Bronx.

Warehouse and industrial properties have become hot commodities because of a greater demand for last-mile space that can be used to deliver e-commerce purchases throughout the city.

Late last year, Maryland-based logistics company Realterm Logistics paid $115 million – or about $300 per square foot – for a warehouse in the Morris Park section of the Bronx. Pricing for industrial properties in the Bronx averaged shy of $240 per square foot during the first quarter, according to Ariel Property Advisors.

MRP Realty made its first purchase in New York in in 2015 — a decade after it was founded in 2005 — when the company bought an office condominium at 133 West 52nd Street for $36 million in a joint venture with Long Wharf Real Estate. The company, headed by managing principal Bob Murphy, sold the condo last year for $46 million.

MRP’s largest purchase to date in New York is the 175,000-square-foot office building at 405 Park Avenue in Midtown East, which it purchased for $240 million in 2016 with Deutsche Bank Asset Management.

The owners last year struck a deal to buy development rights and plan to add additional floors of office space.

Correction: A previous version of this article erroneously stated that MRP Realty had bought air rights from St. Patrick’s Cathedral for 405 Park Avenue. 


Related Articles

arrow_forward_ios
1065-1075 Gerard Avenue in the Bronx 
Prana pays Related $36M in Bronx multifamily play
Prana pays Related $36M in Bronx multifamily play
448 East 143rd Street in the Bronx (Credit: Google Maps)
Private developer’s NYCHA project in Mott Haven lands $79M in financing
Private developer’s NYCHA project in Mott Haven lands $79M in financing
1159 and 1184 River Avenue with Maddd Equities' Jorge Madruga (left) and Joy Construction's Eli Weiss (right) (Credit: Google Maps)
Maddd Equities, Joy Construction score $64M for massive Bronx project
Maddd Equities, Joy Construction score $64M for massive Bronx project
Slate founding partners Blair Welch and Brady Welch (Slate, iStock)
RE-focused investment firm Slate raises $600M for private-credit fund
RE-focused investment firm Slate raises $600M for private-credit fund
Scott Rechler, CEO of RXR Realty and The Real Deal's Amir Korangy
Coffee Talk: Scott Rechler on beating the pandemic
Coffee Talk: Scott Rechler on beating the pandemic
L&L Holding’s David Levinson and Columbia Property Trust's Nelson Mills with a rendering of 261 11th Avenue (L&L, Columbia Property Trust, Terminal Warehouse)
L&L, Columbia Property Trust land $1.3B loan for Chelsea office project
L&L, Columbia Property Trust land $1.3B loan for Chelsea office project
Pandemic lockdowns for all three cities started in the last full week of March 2020, but office use had already plunged the week before as companies proactively sent workers home (iStock)
Manhattan lags Chicago, LA in returning to the office
Manhattan lags Chicago, LA in returning to the office
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
arrow_forward_ios

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

Loading...