Blackstone buys Bronx warehouse for $29M from controversial carter

One seller's family business collapsed after ProPublica exposé

Dec.December 19, 2019 10:39 AM
From left: Blackstone's Jonathan Gray, Joseph Simone of Simone Development and 535 Zerega Avenue in the Bronx (Credit: Google Maps, Simone Development)

From left: Blackstone’s Jonathan Gray, Joseph Simone of Simone Development and 535 Zerega Avenue in the Bronx (Credit: Google Maps, Simone Development)

Continuing its expansion of industrial real estate, the Blackstone Group scooped up a one-story warehouse in the Bronx that recently snagged Krispy Kreme as a tenant.

The private equity giant dropped $28.5 million on 535 Zerega Avenue in Castle Hill, property records show. The sellers were Simone Development Companies and an entity managed by Steven Squitieri, whose family ran the now-defunct garbage hauler Sanitation Salvage.

Blackstone and Simone declined to comment. Squitieri, whose company was the subject of a ProPublica and Voice of America investigation that underscored safety and labor concerns in the city’s private carting industry, couldn’t be reached. The Squitieri family closed the hauling operation in the wake of the exposé.

GFI Realty brokered the deal. The brokers were Erik Yankelovich, who has since left GFI to start his own firm, ARG Partners, and Zakary Levin.

The sellers picked up the site, on the waterfront and near another Simone industrial building at 1200 Zerega Avenue, for $1.2 million in 2013 from the city’s Economic Development Corporation. They filed an application less than a year later to construct a 74,250-square-foot warehouse there.

The property is leased to two tenants. Doughnut-maker Krispy Kreme inked a 26,486-square-foot lease at the building in June. The nonprofit New York Road Runners occupies the rest of the space.

Blackstone has been on an industrial tear of late. It struck a massive deal earlier this year to acquire a $19 billion national portfolio from Singapore-based entity GLP and said it was buying Colony Capital’s 60-million-square-foot portfolio for $5.9 billion.

Related Articles

Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

1065-1075 Gerard Avenue in the Bronx 

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

FM Capital's David Brecher and LIVWRK's Asher Abehsera with 160 Van Brunt (Credit: Google Maps)

Red Hook home of Tesla showroom up for sale

Clockwise from top left: 255 East 18th Street, 27-34 Jackson Avenue, 925 Prospect Place, 343 East 17th Street and 311 First Avenue (Credit: Google Maps)

Gramercy Park dev site leads New York’s mid-market investment sales

Infinity Real Estate's Steve Kassin and 1715 East 13th Street (Credit: Infinity Real Estate)

South Brooklyn mixed-use shopping portfolio trades for $165M

LA — not Manhattan — topped US investment sales in 2019

LA — not Manhattan — topped US investment sales in 2019

Rendering of La Central (Courtesy of FXCollaborative)

Here are the details on the next building in the Bronx’s La Central development