Metropolitan Realty Targets Long Island Industrial Buys With $50M Fund
By Andrew Coen August 11, 2021 10:51 am
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Metropolitan Realty Associates (MRA) has raised $50 million of equity for a strategic investment fund focused on Long Island industrial assets, and acquired a fully leased 94,000-square-foot warehouse in its first deal, Commercial Observer has learned.
The fund’s inaugural transaction involved the purchase of a single-story industrial property at 5 Inez Drive in Bay Shore, N.Y., alongside longtime MRA equity partner Angelo, Gordon & Co. for $14 million. Adscott Realty Company was the seller. The warehouse property is currently occupied by national logistics and fulfillment company Ruby Has through April 2025 at a significantly below-market rent, according to MRA officials.
“The dynamic growth of last-mile delivery and e-commerce is expanding exponentially across Long Island,” MRA founder and CEO Joseph Farkas said in a statement. “Contributing to this trend is a population density that skews towards higher income demographics and greater purchasing power by customers requiring abundant and efficient delivery services. As a result, quality warehouse buildings in convenient locations are in high tenant demand to meet their customers’ needs.”
MRA was represented by Michael Ventricelli of Cushman & Wakefield (CWK) in the transaction, while Ashlind Properties’ Richard Cohen represented Adscott Realty.
Situated on a roughly 6.3-acre lot, the 1973-built warehouse features 22-foot-high ceilings; nine loading docks; and two grade-level, drive-in doors. The 5 Inez Drive property is adjacent to a 10-acre vacant site that was acquired by the Rockefeller Group in May for $30 million, where a 170,000-square-foot distribution center is being planned for development.
Manhattan-based MRA is targeting the Long Island market on the heels of acquiring a 304,249-square-foot industrial property in South Windsor, Conn., for $50 million in February through an equity partnership with Clarion Partners Real Estate Income Fund, which CO first reported. The building is fully occupied by FedEx Ground Service with a 10-year lease.
Andrew Coen can be reached at acoen@commercialobserver.com.
