Prologis acquires huge warehouse in Maspeth through multi million dollar deal
Prologis is a public company worth $34 billion and owns almost 700 million square feet of industrial and logistics space all over the world. Is the largest owner of industrial real estate in the country and they have reached and agreement in order to purchase a new warehouse located in Maspeth, Queens. The acquisition will cost Prologis close to $265 million, making this purchase one of the largest of its kind.
The building itself is solid concrete and spans over 350k sf. It features two-dozen loading bays, large on-site parking and an exterior ramp that will enable trucks to park on the sprawling roof of the warehouse. Nowadays, the huge warehouse is used by FedEx as a delivery Center.
The current development was specifically done for FedEx by Suncap Property Group. This firm is based in North Carolina, and they constructed the warehouse after purchasing the lot, which was vacant. FedEx and its competition, UPS, have been increasing their delivery capabilities after e-commerce stores started using their own carriers. UPS has recently leased two warehouse spaces, one in the Red Hook waterfront and the second one in Maspeth. These two lots span almost 2 million square feet.
This is not the first warehouse Prologis acquires in the city. The company purchased a 200k sf warehouse addressed at 1055 Bronx River Avenue last year that set them back $30 million. The building was left empty after its tenant, ABC Carpet and Home left the premises.
E-commerce stores have been the main reason behind the boom of warehouses, mainly because they need presence in big cities in order to reach last-mile deliveries. Another reason for this new trend is the decrease of industrial space available, since many lots were rezoned and converted in different projects far from a warehouse.
The sale was arranged by a team from Cushman & Wakefield on behalf of Suncap. [Crains NY]