An Illinois-based industrial real estate company is making a massive debut in New York City, purchasing almost 1 million square feet of warehouse space in Brooklyn for $134 million.
CenterPoint Properties has purchased the leasehold interest at 101-01 Avenue D, 103-00 Foster Avenue and 101-10 Foster Avenue, along with a one-acre lot on East 105th Street between Avenue D and Foster Avenue, the company announced on Monday. The three-building portfolio spans 925,411 square feet and is 100 percent leased to 13 different tenants.
“As a result of e-commerce and the complex logistical challenge of ‘last-touch’ delivery, demand for warehouse space within the boroughs is as high as ever,” CenterPoint Senior Vice President David Nenner said in a statement. “CenterPoint plans to be extremely active in the boroughs moving forward.”
It is not exactly early to the party: The warehouse market has been hot for a couple of years as internet retailers such as Amazon vie to get buyers their stuff within hours of purchase.
CenterPoint purchased the properties from Rentar Development, and DY Realty’s Mat Diana, Paul Yuras and Peter Derbar represented both sides in the deal.
“We just thought it was a good time to sell,” said Rentar President Felice Bassin. “The market for the industry is obviously very good.”
CenterPoint is based in Oak Brook, Ill., and although it has several industrial properties in New Jersey and in parts of New York, this appears to be its first purchase within the five boroughs, according to its website.
The firm has also been very active in Florida recently. It has plans to build a 296,207-square-foot logistics center at Port Everglades in Fort Lauderdale and bought the 778,816-square-foot distribution center at 1141 Southwest 12th Avenue in Pompano Beach in 2018 for $95 million from Fortress Investment Group.