E-commerce continues to be the hottest game in town
LBA Realty and RXR Realty have acquired a manufacturing complex at 54-15, 55-15, and 56-19 Grand Avenue in Maspeth for $72 million, according to Crain’s. The industrial properties span 320,261 SF and sit on an approximately 384,605 SF lot. The site is zoned for manufacturing and allows for an additional 449,129 SF of development rights.
Why it matters: Industrial is piping hot. At $93 per buildable square-foot, this deal falls inline with the market. With an additional $200 per foot in construction costs, if LBA can find a tenant willing to pay in the $30’s per foot range, this deal will be a major success.
Dig Deeper: Although Prologis’ massive deal to acquire a new Fedex warehouse in Queens has fallen apart, it’s not indicative of the market as a whole. The $265 million deal fell through because Prologis had offered the seller stock as part of the deal. With shares of the REIT decreasing since the signing of the contract, the offer was no longer enticing.
Quotable: CEO of Prologis: “It’s tough to find a 10-20 acre piece of land in a major metro area to build one of these things.” As demands from e-commerce companies continues to rise, Industrial is the wave of the future.