Amazon inks deal for 312K-sf at Thor’s Red Hook warehouse

Joe Sitt’s firm has transition from retail to logistics in recent years

New York /
Nov.November 02, 2020 02:00 PM
Amazon's Jeff Bezos, Thor Equities' Joseph Sitt, and 280 Richards Street (Photos via Getty; Thor Equities)

Amazon’s Jeff Bezos, Thor Equities’ Joseph Sitt, and 280 Richards Street (Photos via Getty; Thor Equities)

Amazon is continuing its expansion spree in the five boroughs with a major warehouse deal in Brooklyn.

The e-commerce giant signed a 20-year, 311,796-square-foot deal at 280 Richards Street in Red Hook, an industrial property owned by Joe Sitt’s Thor Equities, Commercial Observer reported.

Thor originally planned to develop the 7.7-acre complex into an 800,000-square-foot office development, dubbed “Red Hoek Point,” that would have included retail and a waterfront esplanade. But in 2019, the developer dropped that plan in favor of turning the property into last-mile warehouse.

Industrial leasing, particularly for e-commerce companies, is one sector of real estate that hasn’t been as badly affected by the pandemic. Activity in the sector was up 70 percent in the third quarter of 2020, according to a recent CBRE report, with the Amazon deal one of the biggest inked.

Thor was in the process of shifting its core business from retail, which has struggled, to industrial before the pandemic hit. Last year, Sitt’s firm started a new business, ThorLogis, that’s dedicated to purchasing and developing logistics properties.

Thor has also offloaded some of its Manhattan retail properties in recent years, including a commercial condo at 51 Greene Street and three retail condos at 212 Fifth Avenue.

Amazon has inked more than one million square feet of warehouse space this year, including a 975,000-square-foot warehouse at the Matrix Global Logistics Park in Staten Island.

[CO] — Akiko Matsuda


Related Articles

arrow_forward_ios
The New York Life Sciences and Biotechnology Center at First Avenue and 41st Street (NY Life Sciences)
Life sciences leasing breaks annual record in five months
Life sciences leasing breaks annual record in five months
The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
Tax bills show how much Covid devalued NYC real estate
Tax bills show how much Covid devalued NYC real estate
Richard Segal of Seavest Investment Group, David Marx of Marx Development Group and 902 Quentin Road in Brooklyn (Photos via Seavest Investment Group, Marx Development Group and VRMNY)
Westchester firm buys $54M Brooklyn medical building
Westchester firm buys $54M Brooklyn medical building
688 and 702 Court Street, Brooklyn with Madison Capital managing partner Richard Wagman (Google Maps, Madison Capital)
Madison Capital snatches up Red Hook industrial sites for $45M
Madison Capital snatches up Red Hook industrial sites for $45M
Hartz Mountain Industries CEO Leonard Stern and 235 Pinelawn Road (Google Maps, Hartz Mountain)
Warehouse developer accused of violating “Long Island First” policy
Warehouse developer accused of violating “Long Island First” policy
Real Estate EFTs See Investment Amid Pandemic Recovery
Why investors are rushing into real estate ETFs
Why investors are rushing into real estate ETFs
85 Jay Street (Winick, iStock)
An $8M Dumbo condo tops Brooklyn’s luxury contracts
An $8M Dumbo condo tops Brooklyn’s luxury contracts
Manhattan sublease surge shows signs of slowing
Manhattan sublease scourge finally abates
Manhattan sublease scourge finally abates
arrow_forward_ios

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

Loading...