NorthPoint Development is ramping up its ambitions in Yaphank with the purchase of 92 acres from affiliates of the Brookhaven Rail Terminal, according to Long Island Business News.
The Kansas City-based developer wants to build between 650,000 to 1.1 million square feet of industrial space served by rail freight there.
The property is near a 115-acre development site where NorthPoint plans to build 2.5 million square feet of industrial space.
NorthPoint President Chad Meyer told the outlet the firm hopes to close the deal for the 92-acre site by the end of the year. He added that the company is seeking economic incentives from Brookhaven’s Industrial Development Agency.
“We’ve been involved with this for nearly two years now, looking for the appropriate location to make this type of long-term investment to help meet the market demand that currently exists on Long Island,” Meyer told LIBN. “We feel that this is the best location due to its industrial zoning and no conflicts with other commercial or residential uses. And it adds to and permanently protects nearby conservation corridors.”
Investors and tenants are champing at the bit to get their hands on industrial space across the country, including in the Northeast.
Around 30.1 million square feet of industrial space in the Northeast U.S. was leased in the second quarter — the most ever — according to a report from JLL covering New York City’s outer boroughs, Long Island, New Jersey, Pennsylvania and Delaware. More than 50 percent of space under construction in the region is already leased.
Nassau and Suffolk counties saw leasing volume in the second quarter increase by 13 percent from the first quarter, with 21 leases for a total of 701,000 square feet.
The island’s biggest deals include Major deals included Amazon’s lease for 422,000 square feet at JFK Logistics Center in Woodmere and Peloton’s 116,000-square-foot lease in Port Washington.
[LIBN] — Dennis Lynch