FedEx and Sterling Organization buy warehouses in New York
Investors took an early summer vacation in New York last week as just five deals for mid-market commercial properties hit city records.
A notable transaction took place in Queens. FedEx, one of the nation’s largest industrial real estate tenants, has become a buyer in Maspeth, where it has purchased a warehouse and parking lot at 55-70 and 55-80 48th Street for $50 million. Sellers listed in property records include a Florida-based family trust and an LLC with an address matching Long Island-based developer Carco Builders.
Typically tenants, some e-commerce and logistics companies have turned to purchasing their own facilities during the pandemic, perhaps as a cost-cutting measure: asking rents for industrial properties are rising across the country and l available space is increasingly difficult to find.
E-commerce giant Amazon leases the vast majority of its space, but it doubled its real estate holdings last year, expanding its portfolio to 16.7 million square feet in North America – although its latest earnings report suggests the company may have acquired too much property in its buying spree.
While the FedEx purchase fell outside the typical $10 million to $40 million transaction range included in this weekly report, five transactions meeting those parameters were recorded in the city’s ledger last week. Two were in Brooklyn, one in Manhattan, one in Queens and one in the Bronx.
A limited liability company linked to the Gindi family’s real estate investment company, ASG Equities, paid $14.8 million for a three-story department store at 472 86th Street in Bay Ridge, Brooklyn, which once housed a Century 21. The Julian and Sharon Smith Family Limited Partnership were the sellers of the three-story property.
Cousins Al and Sonny Gindi built their family fortune after founding the now-bankrupt Century 21 chain in the 1960s. Now, having bought it, the Gindis plan to redevelop the site of the former flagship of Century 21 in Brooklyn into a 150,000 square foot retail complex.
An entity related to Sterling Organization has acquired a 48,500 square foot warehouse and distribution facility at 307-315 Bruckner Boulevard in Port Morris, Bronx for $14 million. The seller was La Flor De Mayo Express, a Bronx-based moving and storage company.
The deal was the first in New York for Sterling, a private equity firm whose wallet consists primarily of malls anchored in supermarkets throughout the country, including one in Lodi, New Jersey and East Northport on Long Island.
Adam Gordon’s Wildflower has sold a self-storage facility at 262 Mott Street to Nolita for $13 million. The buyer of the property was an LLC with an address in Washington, DC, which matches private equity firm Carlyle Group.
Real estate investor Rosalind Resnick has sold an apartment building at 475-479 4th Avenue in Park Slope for $11 million to an LLC. The five-story, eight-unit prewar building last sold for $5.4 million in 2014, property records show.
Rong Xin Sanford Realty LLC has sold eight commercial condos at 144-27 Sanford Avenue in Flushing, Queens, to 168 Flushing Garden Realty LLC for $11 million. Developer Xin Xiang Lin bought the property for $27 million in 2018 from the Church of Latter-day Saints and built an eight-story, 131-unit apartment building with ground-floor commercial space on the site.