CBRE Completes $330M Acquisition of Red Hook Amazon Facility
DH Property Holdings and Goldman Sachs (GS) Asset Management have completed the sale of a brand-new logistics facility in Red Hook, Brooklyn, to the investment arm of CBRE (CBRE), Commercial Observer has learned.
The joint venture offloaded the 400,000-square-foot asset, fully leased to Amazon (AMZN), at 640 Columbia Street for $330 million to CBRE Investment Management, as demand for industrial real estate continues to surge across the country, especially in port cities.
“We believe that heightened demand for urban, infill logistics facilities, spurred by shrinking delivery windows and rising consumer expectations, will sustain strong demand for logistics space over the next few years,” Mary Lang, head of Americas direct logistics strategies for CBRE Investment Management, said in a statement. “[The property] is located at the confluence of inbound deliveries to the New York metropolitan area and serves as a premier last-mile facility to some of the densest ZIP codes in the U.S., making this a strategic fit with our broader logistics strategy.”
DH Property Holdings and Goldman Sachs bought the site in 2018 for $47.5 million and built the four-story facility on a 4-acre plot of land. It fully leased it to Amazon when the e-commerce giant signed a 12-year deal in 2021, according to The Real Deal, which first reported the sale was in the works.
“640 Columbia is an extraordinary facility that offers unparalleled access to Manhattan, Brooklyn, Queens and the greater metropolitan region,” Dov Hertz, who founded DH Property Holdings in 2016, said in a statement. “It is the first multistory property operating in the Northeast and provides a powerful long-term investment while positioning its tenants to outperform competitors in the market.”
Cushman & Wakefield (CWK)’s Adam Spies, Doug Harmon, Joshua King, Adam Doneger, Gary Gabriel and Kyle Schmidt represented the sellers in the deal, while CBRE Investment Management had in-house representation. C&W declined to comment.
The sale follows the November 2021 sale by DH Property Holdings of another Amazon distribution center at 55 Bay Street, also in Red Hook, to Brookfield Properties for $45 million.
Mark Hallum can be reached at email@example.com.