SUNSET PARK/RED HOOK/GOWANUS – The 18-acre Sunset Industrial Park located on the border of Greenwood Heights and Sunset Park will soon be redeveloped into a distribution center.
Development firm DH Property has partnered with the Chicago firm, Bridge Development, to purchase the site at 75-81 20th Street from 601 West Companies, The Real Deal reports. Though the purchase price was not confirmed, the property had a price tag of approximately $300 million, according to the real estate site.
Sunset Industrial Park has more than one million square feet of buildable zoning rights, according to The Real Deal, and DH Property and Bridge Development will “redevelop the site with new warehouse space which would be used as a distribution hub,” leasing out space to tenants. The article states there is “demand from Internet firms like Amazon to have warehouse space near their customers, or from distribution and logistics companies like FedEx or UPS.”
In October last year it was reported that UPS had signed a long-term lease for a 12-acre lot in Red Hook which includes 219 Sullivan Street, 202 and 242 Coffey Street, 68 and 100 Ferris Street, and a three acre parking lot. The delivery company will likely open a new distribution center of its own at the location.
DH Property also partnered with Goldman Sachs Asset Management and purchased a site in Red Hook adjacent to IKEA at 640 Columbia Street last fall. The firms paid $47.5 million for the property and plan to develop a three-story, 346,500-square-foot commercial distribution center that will include office space, 175 parking spaces, an elevated truck court, and a rooftop soccer field, according to New York YIMBY.
The Sunset Industrial Park site, currently spanning approximately 400,000 square feet across multiple buildings, boasts FedEx and Verizon as two of its “largest tenants.”
Over in Gowanus, All Year Management has purchased eight parcels for $61 million, The Real Deal reports in another article. The commercial and industrial properties include 319 Bond Street, 426 President Street, 327 Bond Street, 383 Carroll Street, and other nearby addresses. The firm has not yet announced what it plans for the sites and is likely awaiting the rezoning of the neighborhood.
Last year, All Year Management partnered with Property Markets Group in purchasing one of the largest vacant sites in Gowanus located at 455-459 Smith Street. The sales price on that deal was reportedly $50 million. The site currently has more than 330,000 square feet of buildable zoning rights, but that could increase if the area undergoes rezoning.
Earlier this year, All Year reportedly paid $55 million for ten parcels along Dupont and Clay Streets on the Franklin side of north Greenpoint. The firm is also behind 123 Melrose, a part of Bushwick’s massive Rheingold redevelopment project which will occupy 1.35 million gross square feet on three city blocks.