Lincoln Equities Group and H.I.G. Realty Partners landed $163.3 million in financing for a Hudson Valley distribution center.
The loan was provided by Heitman for the acquisition and construction of the industrial property at 50 Prospect Hill Road in Brewster, the Commercial Observer reported. A site plan for the planned Brewster Distribution Center has already been approved.
A Cushman & Wakefield team including John Alascio and Chuck Kohaut helped arrange the financing.
Construction for the distribution center is expected to wrap by the second quarter of 2023, according to the Observer. The joint venture between Lincoln Equities and H.I.G. has approved plans for 921,000 square feet of two Class A industrial facilities across the 328-acre property.
The Putnam County property lies only five miles north of Westchester County and close to multiple interstates, allowing tenants to utilize New York City and Connecticut markets.
The planned development is just the latest project H.I.G. and Lincoln Equity are pursuing as partners.
The companies in June landed a $76 million loan to finance the acquisition and capital improvements of a life sciences campus in Hopewell, New Jersey. The partnership acquired the 1.1 million-square-foot former Bristol Myers Squibb campus for $32 million in 2020.
The Hudson Valley is a popular destination for industrial developers looking to take advantage of local airports and trucking routes that wind through the region. In October, the Westchester & Fairfield County Business Journals reported New Jersey-based RDM Group was eyeing $440 million of industrial space in Orange County. The company aimed to build up to 14 warehouses encompassing a total of 4 million square feet.
Industrial real estate remains one of the industry’s hottest sectors, logging 159 million square feet of net absorption in the third quarter. The figure marked the highest quarterly total since 2008, Transwestern reported, as vacancy dropped to 4.7 percent nationwide and asking rents hit a quarterly high of $7.11 per square foot.
[CO] — Holden Walter-Warner