Rechler Equity Partners is refinancing its business park located in a rapidly growing area for e-commerce and near affluent residents. The $120 million loan for the Hampton Business District property in Long Island was issued by AllianceBernstein LP and arranged by JLL.
The property, called Hampton Business District, which was developed in 2014, consists of a total of five buildings across 50 acres. It also includes 385,002 square feet of Class A logistics space. In total, Hampton Business District houses 24 tenants, including United Refrigeration Solutions and Iron Mountain. Occupancy stands at 94 percent at the property.
Some other features include 18 to 22-foot ceiling heights and offerings of move-in-ready suites.
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But most importantly, the site benefits from its location, which is at the entrance of the Hamptons. JLL Senior Managing Director Peter Rotchford said that the area serves 400,000 residents within 20 miles, with summer activity bound to triple that number.
For that reason, he noted that "lenders showed strong interest in this refinancing opportunity for the Hampton Business District."
JLL data shows that the median income in the Hamptons is $128,159, a number that's 65 percent larger than the national median. Plus, the area, known for its seaside resort, has seen e-commerce sales surge by 30 percent each year since 2020, the brokerage said.
The Hampton Business District is five minutes away from the Long Island Railroad Westhampton Station, 45 minutes from Nassau County and two hours from the JFK Airport.
“The Hampton Business District represents our long-term vision to bring Class A industrial space to the East End of Long Island—and this refinancing affirms the strength and stability of that vision,” Gregg Rechler, co-managing partner at Rechler Equity, said in a statement.
“We’re proud to see the business park continue to thrive as a regional economic engine, and we’re grateful to JLL and AllianceBernstein for their partnership in supporting its continued growth.”
Rechler Equity said that it plans to use the funds from the refinancing to eliminate existing debt.
While recent research from Prologis noted that some companies are delaying industrial leasing decisions as trade policies and economic concerns drive uncertainty, the logistics REIT said that long-term fundamentals in the asset class remain robust thanks in part to the demand for e-commerce. E-commerce alone is expected to require an additional 50 to 75 million square feet of logistics space annually in the U.S. by 2030, which will help sustain demand, according to Prologis.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
