A Minnesota-based insurance company has acquired a new Home Depot distribution center on Long Island.
Lincoln Equities Group of East Rutherford, New Jersey, sold the 197,000-square-foot warehouse at 344 Duffy Avenue in Hicksville for $74.5 million. The buyer was St. Paul Fire and Marine Insurance Company, an affiliate of the insurance firm Travelers, which is based in St. Paul, Minnesota.
Travelers did not immediately respond to a request for comment.
Lincoln Equities acquired the 9-acre site for $9.35 million in December 2018, according to property records. While the company was building the distribution warehouse, the property was fully leased to the Home Depot as its distribution center for Long Island.
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A JLL Capital Markets team led by Jose Cruz represented the seller.
“There was a very strong response to the offering from the institutional buyers given the credit, term, location and quality of the real estate,” Cruz said in a statement.
Home Depot has been thriving since the pandemic took hold of the nation. The company’s stock initially plunged in March, but it has since bounced back. Sales at the home improvement chain have also jumped since the pandemic began.
Industrial real estate has also been thriving in the pandemic, thanks in part to the e-commerce boom it spurred. Leasing for industrial properties surged in New York in 2020, and institutional investors have been pouring money into the sector.