Verizon pays $75M for Lightstone’s Bronx warehouse

Wireless provider previously rented 26K sf facility

New York /
Jan.January 05, 2022 11:00 AM

Hans Vestberg, chief executive officer, Verizon in front of the warehouse at 325 Exterior Street in the Bronx (Getty Images, LoopNet, iStock)

Verizon isn’t dropping any calls in New York City, continuing a flurry of recent moves within the market.

The telecom giant purchased a warehouse at 325 Exterior Street in the Mott Haven section of the Bronx for $75 million, the Commercial Observer reported. Verizon previously rented the 26,000-square-foot facility from Lightstone and had a five-year option on the space.

Lightstone has owned the property since purchasing it from ABS Partners Real Estate in April 2019. When it bought the property, the site was already fully leased to Verizon.

According to the Observer, Verizon was represented by a Cushman & Wakefield team including Josh Kurilloff and Rico Murtha. Lightstone was represented by JLL’s Bob Knakal and Jonathan Hageman.

Despite the sale, Lightstone isn’t going far just yet. The company owns an adjacent parcel to the property spanning 355 Exterior Street and 399 Exterior Street, which it acquired in February 2019 for $59 million, according to the Observer. It even filed plans for a 43-story mixed-use tower at 355 Exterior Street in October 2020 with 556,000 square feet of residences.

But the Observer reported the site was put up for sale late in 2021 and remains on the market.

Verizon agreed on Jan. 4 to delay the deployment of its 5G expansion for two weeks amid concerns over airline safety. However, the company is forging ahead with sizable changes to its New York City presence.

The company was reported in October to be planning on relocating hundreds of employees to the Essex Crossing development in the Lower East Side, agreeing to nearly 143,000 square feet across three floors at 155 Delancey Street.

Asking rents reportedly ranged from $80 to more than $130 per square foot. The 20-year lease reportedly has an option for Verizon to grab more space and create a 350,000-square-foot campus for itself. It has until late 2022 to exercise that option.

Verizon maintains more than 565,000 square feet at landmarked 140 West Street, which holds unmovable specialized switching agreement. The telecom giant also has an office in Fort Greene and corporate headquarters at 1095 Avenue of the Americas.

[CO] — Holden Walter-Warner





    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
    Equity Group Investments chairman Sam Zell (Getty, iStock)
    Office market’s recovery will outpace retail amid “viability” questions, Zell says
    Office market’s recovery will outpace retail amid “viability” questions, Zell says
    (iStock)
    CRE sales hit record $809B in 2021
    CRE sales hit record $809B in 2021
    Steven Pozycki, chief executive officer, SJP Properties, in front of 111 River Street in Hoboken, NJ (SJP Properties, LoopNet, iStock)
    SJP, David Werner buy waterfront Hoboken office, retail property
    SJP, David Werner buy waterfront Hoboken office, retail property
    SUNY WCC President Belinda Miles and the Cross County Center in Yonkers (Great Ink Communications/Marx Realty)
    College leases 40K sf at ex-Sears in Yonkers
    College leases 40K sf at ex-Sears in Yonkers
    Meridian Capital’s Ralph Herzka with 165 Central Avenue, 198 Scholes Street, 11 Gunther Place in Brooklyn (Getty, Google Maps, Apartments)
    Meridian Capital could get exclusive on All Year’s $1B portfolio
    Meridian Capital could get exclusive on All Year’s $1B portfolio
    arrow_forward_ios

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

    Loading...