CoStar | July 20, 2016
Cammeby’s Management and the Fruchthandler Family have sold the Bridgedale Plaza industrial building at 23-02 – 24-02 49th Ave. in Long Island City, NY to Westbrook Partners and Innovo Property Group for $195 million, or about $297 per square foot.
The warehouse, fully occupied by three tenants under leases expiring in 2020, traded for an in-place CAP rate below 3 percent. Upon termination of the leases, the buyer plans to convert the building into creative office space.
“The extremely low cap rate demonstrates the strong confidence that the buyers have in Long Island City’s long-term potential,” said Yosef Katz, managing director of investment sales with GFI Realty Services LLC. “While value-add renovations and subsequent lease-up are several years out, the buyers recognized this as a unique opportunity to capitalize on an extremely well-located asset.”
The seven-story, 656,241-square-foot flex property was originally built in 1928 on 2.7 acres in the Northwest Queens Industrial submarket, near the 7 train and the LIRR. It features seven loading docks, 14-foot clear heights, and passenger and freight elevators. The asset is anchored by the New York City Housing Authority, with Eagle Transfer Company and Mayo Studios filling out the remainder.
Yosef Katz and Yisroel Pershin with GFI Realty brokered the sale on behalf of the sellers.
“Long Island City office is booming, and industrial conversion is bringing many new office properties to market,” added Pershin. “Once the property is converted to office use, the buyers anticipate strong leasing activity because of the unmet demand for creative office facilities and the ability to offer space at a 50-percent discount to Manhattan rates.”
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