RXR, LBA Logistics lead filing flurry with $123M for massive Gowanus industrial portfolio

From Brooklyn industrial to Upper East Side luxury resi, Dec. 29 was a busy day

RXR Realty's Scott Rechler (Getty)
RXR Realty's Scott Rechler (Getty)

Several major filings hit city records just before the year comes to a close.

RXR Realty and LBA Logistics make a splash on the Gowanus waterfront

The largest transaction by far in terms of square footage came from a partnership between RXR Realty and LBA Logistics. The firms acquired more than 760,000 square feet of industrial space in Gowanus from Buckeye Partners, a Houston-based logistics company. The eight-building portfolio set them back $123 million, but gives the firms access to waterfront industrial land in a neighborhood swarming with new investment and development.

RXR and LBA are making a huge play for outerboro logistics space, having previously teamed up on a 1.1 million-square-foot, five-story logistics center at 55-15 Grand Avenue in Maspeth, Queens. The firms financed the Gowanus purchase with a $73.8 million mortgage from Bank OZK, according to public records.

Three of the parcels reached six-figure square footages, with the largest sprawling 270,600 square feet and running directly into the Gowanus Canal.

Rabsky unloads 240 Willoughby Street

Simon Dushinsky’s secretive firm sold the ground lease at 240 Willoughby Street in Fort Greene for $75 million. Rabsky bought the former medical building in 2018 for $100 million and planned to acquire a nearby parking garage to earn up to 700,000 square feet of residential development rights on the land. The buyer, private equity firm Montgomery Street Partners, is led by former investment banker Murray McCabe.

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Izaki Group heads downtown

The Israeli real estate development company helmed by Ron Izaki bought a portfolio of buildings on the corner of 14th Street and 6th Avenue for $46 million. The assembly adds up to roughly 40,000 square feet and belonged to Morgan Holding Corp.

Now that’s a lot of coats

Discount clothing store Burlington Stores (formerly Burlington Coat Factory) may tend toward low-rent locales, but its CEO is moving to Fifth Avenue. Michael O’Sullivan, who heads up the chain, and his wife Elyse purchased a $19 million co-op in the pre-war, white-glove building on the Upper East Side. The J.E.R. Carpenter-designed building is known for the size of its apartments, which range from eight to 15 rooms.

Closing the loop

Two deals previously covered in The Real Deal finally closed, one with an unexpected drop in price.

Los Angeles real estate investor CommonWealth Partners bought Cove Property Group’s Hudson Commons office building near Hudson Yards for $1.03 billion. That’s roughly the price that was expected when Bloomberg first reported the building was being shopped in September.

GFP and Northwind Group weren’t so lucky. German investor Commerz Real bought their tower at 100 Pearl Street in the Financial District fior $756 million, which is $100 million less than the previously reported price tag.