Terreno Agrees to Buy Amazon-Leased Red Hook Warehouse for $157M
By Isabelle Durso November 26, 2024 1:04 pm
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Industrial real estate operator Terreno Realty is in contract to buy up Thor Equities’ Amazon (AMZN)-leased warehouse in Red Hook, Brooklyn.
Thor is expected to sell the tech giant’s distribution center at 280 Richards Street to Terreno for about $157 million, with the deal expected to close in 2025, sources familiar with the sale told Commercial Observer. The Real Deal first reported the news.
Newmark (NMRK)’s Adam Spies, Adam Doneger and Willis Robbins brokered the sale. Newmark declined to comment, while spokespeople for Terreno and Thor did not immediately respond to requests for comment.
The deal was “critical for Amazon business consumers” as the site “serves all of the business in the greater area” and is a “key piece of infrastructure,” a source said.
Thor bought the Brooklyn waterfront property in 2005 for about $40 million, TRD reported. Thor originally planned to build a 795,000-square-foot office development on the site but in 2019 pivoted to build a last-mile warehouse instead, as CO previously reported.
That worked out as Amazon signed a 20-year lease for 311,796 square feet there in November 2020, as CO previously reported.
The warehouse was then put on the market this summer for about $150 million, and Terreno is expected to assume a $73 million mortgage on the site upon the deal’s closure, TRD reported.
Terreno’s new deal in Red Hook comes after the San Francisco-based real estate investment trust bought another industrial building in the neighborhood at 185 Van Dyke Street in October 2023 for $27.5 million, as CO reported.
Terreno also bought a portfolio of properties in New York and New Jersey from Blackstone in May for $246 million. More than 20 of the sites in the portfolio are in Queens.
Isabelle Durso can be reached at idurso@commercialobserver.com.
