New York
Warehouses in the sky: Multi-level projects ramp up
Trending
CBRE nears $330M deal for Amazon-leased warehouse in Red Hook
Dov Hertz, Goldman Sachs in late-stage talks to sell multi-story facility to CBRE Investment Management
CBRE is back for another Amazon-leased warehouse.
The commercial real estate firm’s investment arm is in late-stage talks to buy the multi-story Amazon logistics facility at 640 Columbia Street in Red Hook for $330 million, The Real Deal has learned.
The sellers are Dov Hertz’s DH Property Holdings and Goldman Sachs Asset Management, which bought the site four years ago and are nearly finished constructing the roughly 400,000-square-foot facility, where Amazon is signed to a 12-year lease.
The deal marks CBRE Investment Management’s second major purchase of an Amazon-leased facility in Brooklyn this year. The $147 billion investment fund, headed by CEO Chuck Leitner, paid $230 million in April for a pair of warehouses operated by the e-commerce giant in East New York.
A spokesperson for CBRE Investment Management declined to comment. Representatives for DH Property Holdings and Goldman Sachs Asset Management did not immediately respond to requests for comment.
Read more
Warehouses in the sky: Multi-level projects ramp up
New York
CBRE affiliate buys two Amazon warehouses for $230M
The multi-story logistics center in Red Hook, among the first of its kind on the East Coast, is an important piece of Amazon’s delivery network. It allows the company to make deliveries in a five-mile radius that stretches to four of Brooklyn’s five most affluent neighborhoods, according to marketing materials from Cushman & Wakefield, whose team led by Adam Spies and Doug Harmon brokered the deal.
Amazon’s rent on its 12-year lease, signed last year, is already roughly 30 percent below the current market rate, according to the marketing materials.
Hertz and Goldman Sachs picked up the four-acre site, next door to IKEA, in 2018 for $47.5 million and landed a $155 million construction loan from JP Morgan and Square Mile Capital Management.
Around the corner, Hertz’s DH Property sold the ground lease on an 85,000-square-foot Amazon facility in November to Brookfield Properties for $45 million.