New industrial space tends not to stay on the market long in New York City, and 807 Bank Street was no exception.
Following a 60,000-square-foot deal, a state-of-the-art distribution warehouse in Brooklyn is fully leased within a few months of its completion, according to Ryan Nelson of Turnbridge Equities.
The real estate investment firm and Dune Real Estate Partners own the property. The new tenant at their 172,000-square-foot Canarsie warehouse is Otto Environmental Systems.
Nelson did not disclose the final rent, citing confidentiality provisions, but said it is in line with industrial rents for Class A industrial space in the city. The asking rent was in the mid-$30s per square foot, triple-net.
A Cushman & Wakefield team including Rico Murtha and Helen Paul represented Turnbridge and Dune.
The development has private rooftop parking, but its pièce de résistance is a 670-kilowatt rooftop solar carport system. It is one of only two LEED Platinum-designated distribution warehouses on the East Coast.
Turnbridge and Dune bought the site in December 2021 for $22.5 million and began construction in late 2022 after demolishing two vacant warehouses at 807 Bank Street and 300 DeWitt Avenue. Capital Group provided a $49 million loan for the acquisition and development.
The new building was 65 percent pre-leased by two tenants at delivery in May. Red Bull leased just under 60,000 square feet, according to a Colliers report, and UPS leased about the same amount, according to JLL data.
Turnbridge Equities, founded in 2015 by Andrew Joblon, has a $4 billion portfolio. Dune is a New York City-based real estate investment firm launched by Daniel Neidich in 2005.
Industrial rents are more expensive in New York City than elsewhere because space is scarce; many manufacturing areas were rezoned or repurposed as Gotham shifted to a knowledge and services economy over the past 60 years.
Nationally, the metro areas with the most industrial space under construction are Savannah, Phoenix, Dallas, Austin and Kansas City, according to CommercialSearch data. Chicago is sixth. New York did not make the top 20.
Industrial rents soared during the pandemic, thanks largely to demand for last-mile facilities, but have tapered off as developers responded by adding space. Prices even fell in Los Angeles as the industrial vacancy rate increased to a 14-year high of 3.7 percent last quarter. Still, rents have soared in parts of the country this year, including in Florida.
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