Terreno Realty Picks Up Long Island City Industrial Property for $23M
By Mark Hallum March 9, 2023 1:22 pmreprints
Titan Contracting offloaded a Long Island City, Queens, warehouse to real estate investment trust Terreno Realty for $23 million, Commercial Observer has learned.
The 55,000-square-foot property at 42-11 Ninth Street has 17-foot ceiling heights and offices built in, but also has redevelopment potential with zoning that allows for 320,000 square feet that could be used for studios, industrial uses, logistics, life sciences or offices, according to sales broker JLL.
“This is an extraordinary opportunity for near-term industrial use with the potential for development in a wide variety of sectors,”JLL’s Michael Mazzara, who represented the seller with Ethan Stanton, Winfield Clifford, Stephen Palmese and Brendan Maddigan, said in a statement. “The property benefits from its location in the heart of Long Island City, which is experiencing enormous growth … and a diverse array of local and international businesses.”
In 2020, Scott Rechler’s RXR had considered buying the property and had commissioned Langan Engineering to put together an environmental assessment to build a 21-story mixed-use office tower at the site, according to New York YIMBY.
The plan does not seem to have advanced, and the JLL brokers declined to comment on the matter.
The 1.1-acre parcel has a single tenant on a short-term lease, according to JLL, but it’s not immediately clear who occupies the space. The Bellevue, Wash.-based Terreno may have assumed some of the roughly $8 million debt still owed by the previous owners, which took out a series of loans in 2017, according to the buyer and property records.
Terreno did not immediately respond to a request for comment. It’s unclear what its plans are for the property.
The REIT Terreno invests in properties in regions across the country including Los Angeles, New Jersey, New York City, the San Francisco Bay Area, Seattle, Miami and Washington, D.C.
At the end of February, the firm picked up another industrial property in Hialeah, Fla., for about $173.6 million with the potential for 2.2 million square feet of distribution center space across the 121-acre parcel in Miami-Dade’s Countyline Corporate Park, according to Terreno.
Terreno already owns seven fully leased buildings in the Florida complex.
Mark Hallum can be reached at email@example.com.