UPS Boxes Off 1.7M SF for Distribution Centers in Brooklyn and Queens
United Parcel Service (UPS) has reportedly agreed to two massive, long-term triple-net leases for future distribution centers in Red Hook, Brooklyn and Maspeth, Queens.
According to The Real Deal, UPS has agreed to net lease a 12-acre waterfront site in Red Hook owned by industrial landlord Sitex and featuring 1.2 million buildable square feet. Sitex recently acquired the property from Italian development firm Est4te Four for $110 million, as Commercial Observer first reported in April—putting an end to Est4te Four’s ambitious plans for a sprawling office complex on the site, dubbed Red Hook Innovation Studios.
In addition, the publication reported that UPS has also agreed to net lease a 475,000-square-foot warehouse at 50-02 55th Avenue in Maspeth from longtime owner Solil Management, which owns and manages the assets of the late real estate investor Sol Goldman. The warehouse was most recently used as a distribution center for pharmacy and convenience store chain Duane Reade before closing this past May.
Asking rents in the deals were $25 per square foot for the Red Hook property and $20 per square foot for the Maspeth location, according to TRD, which said the lengths of the triple-net leases were not immediately known.
Avison Young reportedly represented UPS in the transactions. A spokesman for the brokerage did not immediately provide comment to CO, while representatives for UPS, Sitex and Solil did not immediately respond to CO’s requests for comment.