Terreno Picks Up Red Hook Industrial Building for $27.5M
Terreno Realty bought an industrial building on the waterfront of Red Hook, Brooklyn, for $27.5 million, the company announced Thursday.
The San Francisco-based real estate investment trust picked up 185 Van Dyke Street — which has a 96,000-square-foot industrial building and 3.8 acres of waterfront property — from longtime owner Lande Alexander in a deal that closed Wednesday, according to the seller.
“For us, it was very much location-driven,” said Hayes Graham, vice president of acquisitions and asset management for Terreno. “We see a lot of potential in Red Hook as a neighborhood.”
The building is currently leased to Strong Rope Brewery, Steve’s Authentic Key Lime Pie and about 16 other companies. Terreno plans to keep its existing tenants while renovating the vacant spaces and leasing them out to similar users.
“We like the existing functionality of the building,” Graham said. “We’re looking forward to leasing this to local Red Hook tenants, whether it’s bakeries or artists lofts. … We’re not planning on leasing this to any large tenants.”
JLL (JLL)’s Michael Mazzara, Robert Knakal, Stephen Palmese, Brendan Maddigan, Ethan Stanton and Winfield Clifford represented the seller in the deal, while Daniel Morici, also of JLL, handled it for Terreno.
“This deal signifies continued resiliency and demand for well-positioned New York City industrial properties,” Morici said in a statement. “Red Hook has a great diversity of industrial, retail and creative office users, and we look forward to collaborating with local artists and the community as we look to lease the remainder of the property.”
This is the second property the industrial-focused Terreno — which has assets in Los Angeles, New Jersey, Seattle, Miami, Washington, D.C., and the San Francisco Bay Area — has bought in the city this year.
In March, Terreno bought a warehouse at 42-11 Ninth Street in Long Island City, Queens, for $23 million. The REIT has a portfolio of six buildings in the city and recently opened a New York office with plans to buy more properties in the city, Graham said.
Nicholas Rizzi can be reached at email@example.com.