NEW YORK CITY-A 229,000-square-foot, four-building industrial and office portfolio adjacent to JFK International Airport, in Jamaica, Queens, has been sold for $53.1 million. Terreno Realty purchased the properties, known as JFK Airgate. The identity of the seller was not clear at press time; published reports identified it as a fund managed by Prologis. Cushman & Wakefield‘s metropolitan area capital market group arranged the trade.
More specifically, C&W’s vice chairmen Andrew Merin and David Bernhaut, as well as Gary Gabriel, EVP and Kyle Schmidt, financial analysis manager—based in the commercial real estate services firm’s East Rutherford, NJ office—headed the assignment. Gabriel notes that the offering’s core characteristics drew a high level of interest from the investment community.
“The portfolio’s functionality – highlighted by market-leading product in an irreplaceable location – is best illustrated by its tenants, which include some of the largest, most sophisticated and best-known logistics firms in the world,” he says. “The buildings are 99 percent leased, with FedEx, UPS, Kuehne + Nagel and SDV USA among the major users. They are here for a reason. ”
Built between 1986 and 1991, the JFK Airgate portfolio’s one office and three industrial buildings are decades younger than a majority of the surrounding submarket and consequentially offer tenants increased efficiency. Private truck courts accommodate full-size trailers, and below-grade car parking sets it apart from much of the competition and will always be a key differentiator when competing for tenants, according to Schmidt.
“Located just minutes from the tarmac, JFK Airgate serves as a critical conduit between the New York City Metropolitan Area and global commerce,” Schmidt adds. “This property is wholly integrated with the region’s massive logistics and distribution system, providing efficient coordination between ‘wings and wheels.’”
While the area is a submarket with extremely high barriers to entry and very few property trades, the JFK Airgate portfolio generated over two dozen bids from major institutional players and REITs, notes C&W. Schmidt offers up a possible reason for the high level of demand, and for the successful closing.