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

New York /
Jun.June 15, 2022 03:15 PM
DH Property Holdings's Dov Hertz, CBRE Investment Management’s Chuck Leitner and 640 Columbia Street (CBRE, 640 Columbia)

DH Property Holdings’s Dov Hertz, CBRE Investment Management’s Chuck Leitner and 640 Columbia Street (CBRE, 640 Columbia)

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.

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.





    Related Articles

    arrow_forward_ios
    CBRE’s Barbara Perrier and Darla Longo (Photo by Kevin Scanlon)
    Sister act: How CBRE’s Darla Longo and Barbara Perrier became an industrial force
    Sister act: How CBRE’s Darla Longo and Barbara Perrier became an industrial force
    From left: Duke Realty CEO Jim Connor and Prologis CEO Hamid Moghadam (Duke Realty, Prologis, iStock)
    $26B Prologis-Duke deal ends cold war
    $26B Prologis-Duke deal ends cold war
    Taconic's Charles Bendit and Paul Pariser with rendering of One Essex Crossing (Taconic Partners, VMI Studio)
    Essex Crossing developers land $466M refi
    Essex Crossing developers land $466M refi
    Redburn Development's Jeff Buell (left) and  Rosenblum Development's Jeff Mirel (right) with 745 Broadway (Redburn, Rosenblum, Red Mark Realty)
    Albany industrial district undergoing transformation
    Albany industrial district undergoing transformation
    From left: Duke Realty chair and CEO Jim Connor; Prologis chair and CEO Hamid Moghadam (Duke Realty, Prologis, iStock)
    Swarmed at REIT event, Prologis and Duke mum on mega-merger
    Swarmed at REIT event, Prologis and Duke mum on mega-merger
    Vanbarton's Justin Kleinman and 103-109 East Burnside Avenue (LinkedIn, Google Maps, iStock)
    Vanbarton unloads 3 Bronx properties in busy week for i-sales
    Vanbarton unloads 3 Bronx properties in busy week for i-sales
    Taurus' Lathan Allen with Sunbelt, Warehouse
    Taurus Investment ponies up $174M for Sun Belt warehouses
    Taurus Investment ponies up $174M for Sun Belt warehouses
    (iStock)
    Another big quarter for tri-state warehouses, but party may be ending
    Another big quarter for tri-state warehouses, but party may be ending
    arrow_forward_ios

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

    Loading...