Industry City and Terminal Operator to Run Historic Brooklyn Shipping Hub
Industry City and joint venture partner Red Hook Container Terminal, a dock operator, have signed a 36-year lease at the South Brooklyn Marine Terminal in Sunset Park, Brooklyn to operate the shipping hub, according to an announcement yesterday from the New York City Economic Development Corporation.
The NYCEDC, the landlord of the site at Second Avenue between 29th and 39th Streets, selected the partnership, called the Sustainable South Brooklyn Marine Terminal, to revitalize the 64.5-acre site. It currently is occupied by five buildings that collectively have 350,000 square feet. The partnership will pay a base rent of $4 million a year with increments, and it will invest $15 million to renovate the properties.
“For too long, the South Brooklyn Marine Terminal has not lived up to its potential and we’re pleased to be a part of a viable plan to activate this precious site,” Mike Stamatis, the president and CEO of Red Hook Container Terminal, said in prepared remarks. “Our partnership with Industry City and NYCEDC will transform the terminal into a vibrant cluster of industrial maritime activity over the coming decades.”
It will take up to three years to make the site fully operational, according to the news release. But the newly renovated facility allow for companies to move more than 900,000 metric tons of materials—such as containers from barges, lumber and salt—annually via the port. There will also be waste paper recycling at the site, the release said.
Since 2011, the NYCEDC has spent more than $115 million to improve infrastructure on the more than half a century-old site. In recent years there have been a variety of cargo shipped from the South Brooklyn Marine Terminal, including components for the New York Wheel, which is being built on Staten Island.
“New York City’s working waterfront has long been a source of economic vitality, fueling industries and good-paying careers for over a century,” said NYCEDC President and CEO James Patchett in prepared remarks. “Thanks to the vision of our local leaders and the Sunset Park Task Force, [the de Blasio] administration is proud to deliver a transformative maritime facility that will create new opportunities for industries, local businesses and New Yorkers.”
There were no brokers involved in the transaction.