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Release Date: Wednesday, January 22, 2014
Media Contact: Evelyn Weiss Francisco (201) 796-7788
Terreno Acquires Four-Building Queens, N.Y., Asset
QUEENS, N.Y., Jan. 22, 2014 – Cushman & Wakefield’s Metropolitan Area Capital Market Group has arranged the trade of a 229,000-square-foot, four-building portfolio situated adjacent to JFK International Airport in Queens. Terreno Realty purchased the properties, known as JFK Airgate, for $53.1 million.
Cushman & Wakefield’s Andrew Merin, David Bernhaut, Gary Gabriel and Kyle Schmidt, based in the commercial real estate services firm’s East Rutherford, N.J., office, headed the assignment. Gabriel noted that the offering’s core characteristics drew an unprecedented 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,” Gabriel said. “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 said. “This property is wholly integrated with the region’s massive logistics and distribution system, providing efficient coordination between ‘wings and wheels.'”
In 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. “The seller maintained and leased Airgate to the highest level of institutional standards,” Schmidt said. “Terreno Realty’s acquisitions team provided assurance that they would close as promised, and then executed their end perfectly.”
Cushman & Wakefield’s Metropolitan Area Capital Markets Group specializes exclusively in investment sales of office, industrial, multifamily and retail properties throughout New Jersey, New York, Fairfield County, Conn., and Pennsylvania. The team has completed more than $19.5 billion worth of transactions since 1992.