One of the biggest players in industrial real estate has nabbed a substantial development site in Nassau County.
Prologis is buying a 17-acre site in Bethpage from aerospace firm Northrop Grumman for $51.2 million, the Long Island Business News reported. The sale price works out to about $3 million per acre.
The Denver-based logistics company reportedly has plans to develop the site into a 239,000-square-foot warehouse and distribution complex. The property has a pair of office buildings totaling 218,000 square feet and a 10,000-square-foot former steam plant that would be demolished.
Warehouse and distribution center space is hotter than any sector in real estate, but Prologis is still seeking tax incentives from the local industrial development agency for the $106 million project. The company also needs approval from the Town of Oyster Bay to move ahead with construction.
Prologis aims to break ground next May and complete the project by the following spring.
Northrop Grumman had been marketing the property, largely located at 600 Grumman Road West, since November. A JLL team including Jose Cruz and Marc Duval represented the company in the sale.
On the strength of bustling e-commerce and the quest for ever-faster delivery of internet orders, Prologis has been riding high. The company beat Wall Street’s consensus expectations for the first quarter and raised its earnings guidance for 2022 by 10 percent, as net operating income spiked 8.7 percent globally and 9.7 percent in the United States year-over-year in the quarter.
As of March 31, Prologis’ portfolio was more than 98 percent leased.
It remains unknown who will lease the Bethpage warehouse once it comes into existence, but Prologis is sometimes referred to as “Amazon’s landlord” given its propensity for cutting deals with the e-commerce behemoth.
[LIBN] — Holden Walter-Warner