Rechler Equity Seeks Record Sum for LI Industrial Park

There could soon be a new high-water mark for industrial sales on Long Island.

Plainview-based Rechler Equity Partners is shopping the Hampton Business District in Westhampton Beach, according to Green Street. Bidding for the five-building, 385,000-square-foot industrial park on the East End is expected to top $200 million.

The five-acre campus at 200, 215, 220, 230 and 245 Roger’s Way was completed five years ago. The property is 94 percent leased by two dozen tenants, who have a weighted average remaining term of more than seven years. Among the major tenants are Amazon and Iron Mountain; Amazon is responsible for 27 percent of the property’s income.

There’s room for growth on the rent front, though. The rents in place are 17.5 percent below market rate, on average.

The property benefits from proximity to the local airport and Sunrise Highway, connecting the campus with much of Long Island. The rare industrial park in the Hamptons also provides access to e-commerce demand in the area, which saw such sales rise by 30 percent each year since 2020 — double the national rate.

JLL has the listing for the property. Should a sale price come close to the projections, it would shatter Long Island’s industrial record, Starwood Capital’s $146 million acquisition of an asset in Inwood two years ago.

There have been a number of big industrial deals on the island in recent months.

In September, Bahrain-based Investcorp purchased a five-property, 435,000-square-foot industrial portfolio in Suffolk County from a joint venture between Metropolitan Realty Associates and TPG Angelo Gordon for $95.8 million.

Two months later, NorthBridge Partners paid $105.7 million to purchase two Bay Shore properties from the Rockefeller Group.

In the fourth quarter, leasing activity in Long Island’s industrial market fell to 389,000 square feet, the lowest total in two years, according to CBRE. Occupancy shrank by 246,000 square feet while the vacancy rate rose to 7 percent.