The partnership of Bridge Development Partners and DH Property Holdings, along with equity partner Banner Oak Capital Partners, announced that it has acquired Sunset Industrial Park in Brooklyn.
Plans for the 18-acre site — located on Third Avenue between 19th Street and 21st Street, along the Gowanus Canal — include the demolition of existing structures and the development of a four-story, up to 1.3 million-square-foot distribution center that will be the largest of its kind in the United States.
The multistory facility will be designed with an intricate ramping system so that each of its four floors will be fully cross-docked and directly serviceable by full size tractor trailers.
The lower two stories of the facility will feature 32-foot clear heights, while the upper two stories will feature 28-foot clear heights.
“This will be a groundbreaking project for the U.S. industrial market, not only because of the building’s unprecedented design—essentially, four separate, stacked distribution centers—but also because of the enormous benefit it will have from a ‘last mile’ standpoint,” said Jeff Milanaik, partner – Northeast Region, Bridge Development Partners.
“As e-commerce companies race to meet demand for same-day—and even two-hour—delivery, this facility will offer users the ultimate last mile access to New York City’s massive consumer base, including those in Williamsburg, Long Island City, and Manhattan.”
Tony Pricco, president of Bridge Development Partners, added: “Demand for best-in-class distribution space in New York City’s outer boroughs has surged, as the major e-commerce users continue to heighten their focus on last mile delivery operations to service the city’s consumer populations. Bridge, in partnership with DH Property
Holdings, plans to be at the forefront of last mile development in the outer boroughs, and we are actively pursuing additional acquisition and development opportunities in the area.”
The demolition of Sunset Industrial Park’s existing structures is expected to begin in early 2020, with the start of ground-up development for the new distribution center expected by the end of 2020.
“Located within five miles of the Verrazano bridge, and within a one-hour drive of 13 million consumers, Sunset Industrial Park presents the perfect location for last mile distribution,” said Dov Hertz, president of DH Property Holdings.
“It sits at the nexus of the inbound and outbound traffic needs of any third-party logistics, parcel carrier, or retailer looking to meet same, or next day, delivery in New York City. The partnership of Bridge and DHPH is the perfect marriage between a seasoned New York City operator, with 30 years of local knowledge and experience, and a best-in-class national industrial development firm.”
“We’re looking forward to continuing our strong partnership with Bridge as well as beginning a new partnership with DHPH on this project,” added Aaron Murff, Partner at Banner Oak.
A JLL team led by Rob Kossar, Aaron Appel, Jonathan Schwartz and Mo Beler advised the purchasers on the acquisition, arranged financing and will handle the leasing and management of the project.
Additional team members include Leslie Lanne, Leasing, and Angela Alfano, Property Management. Banner Oak Capital Partners, L.P. provided the equity and Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) is providing the debt on the project.