Thor To Sell Amazon-leased Red Hook warehouse

Joe Sitt found a buyer for his Amazon-leased warehouse in Brooklyn.

Thor is under contract to sell its 312,000-square-foot distribution center at 280 Richards Street in Red Hook for about $157 million to Terreno Realty, according to sources familiar with the matter.

Thor received interest from overseas investors from South Korea, Germany and the Gulf States, according to a source.

Adam Spies and Adam Doneger of Newmark brokered the deal.

Thor listed the property this summer seeking about $150 million. Industrial properties in Brooklyn are in hot demand, especially when Amazon has a 13-year lease.

Thor acquired the development site in 2005 for about $40 million. Sitt’s firm initially planned to build an office complex, but changed course and built a warehouse as the office market weakened and interest in last-mile industrial properties took off.

The new buyer can assume a $73 million mortgage on the property, which has a 3.85 percent interest rate through 2028, according to marketing materials.

Terreno bought a sprawling portfolio of industrial properties throughout New York and New Jersey from Blackstone for $246 million earlier this year. More than 20 properties in the portfolio are in Queens near the John F. Kennedy Airport.

Thor is known for retail properties in Manhattan, but is focusing increasingly on industrial real estate, starting its division ThorLogis in 2019.