Two years after making it available to buyers, Blackstone offloaded a warehouse next to LaGuardia Airport in Queens.
An investment fund managed by Morgan Stanley Real Estate Investing acquired the property at 83-15 24th Avenue and the adjacent parking lot for $86.7 million, according to the Commercial Observer. reported. Looking at the 117,000-square-foot facility, the deal works out to $741 per square foot.
The facility occupies two lots in East Elmhurst, while the parking lot covers nearly two acres. FedEx occupies the entire warehouse and, according to JLL, has more than seventeen years of lease remaining. FedEx uses the property to support last-mile distribution.
Blackstone closed the deal through its portfolio company Revantage. The Morgan Stanley fund used a public company for the acquisition.
A JLL team including Tyler Peck, Andrew Scandalios and John Huguenard arranged the deal. Blackstone and Morgan Stanley declined comment.
Blackstone acquired the warehouse from Steel Equities in 2019 for $55.5 million, about a decade after Steel acquired the building for $22.7 million. Nuveen provided nearly $39 million in acquisition financing to Blackstone.
Two years ago, however, the private equity giant decided to put a six-property industrial portfolio on the market, consisting of assets in and around New York City. The portfolio totaled 929,000 square meters and was fully leased, with each property occupied by one tenant. The weighted average remaining term of the lease agreements was 6.13 years.
That listing came after Blackstone’s $3.1 billion industrial sale to Prologis. That portfolio deal consisted of 70 properties, primarily warehouses and distribution centers in markets across the country, spanning nearly 14 million square feet.
New industrial leases in the city’s suburbs this year totaled 2.6 million square feet at the end of the third quarter, up 6.4 percent year-on-year, according to Cushman & Wakefield.
— Holden Walter Warner
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