Queens Industrial Assets Sell for $78M

The joint venture plans to upgrade the buildings in order to capitalize on the growing demand for quality space within the supply-constrained New York market.

Josh Zegen
Josh Zegen

How’s this for something remarkable? A pair of New York City industrial buildings have been acquired by new owners who plan to upgrade them—for continued industrial use.

Madison Realty Capital, in partnership with Artemis Real Estate Partners, has purchased two adjacent industrial buildings, which total 613,000 rentable square feet, in Jamaica, Queens, for $78 million.

The two properties, at 184-10 and 184-60 Jamaica Ave., are six stories and five stories tall, respectively, and were purchased from an unidentified “long-term family ownership.”

Value-add plans in a tight market

The joint venture plans to upgrade both buildings through enhancing the building envelope, mechanical infrastructure and elevators and so capitalize on the growing demand for quality industrial and flex (office/industrial) space within the increasingly supply-constrained New York market.

More than 10 million square feet of NYC industrial space has been taken offline over the last decade through the demolition or repurposing of space for other uses, according to the buyers. At the same time, vacancy rates are at historic lows nationwide, a recent Marcus & Millichap industrial market report shows.

The property is currently 75 percent occupied by several warehouse and manufacturing tenants, including French Connection, Hanky Panky, and Gotham Greens.

184-10 and 184-60 Jamaica Ave. in Queens, New York City
184-10 and 184-60 Jamaica Ave. in Queens, New York City

Built in 1923 and 1954, the buildings feature five freight elevators, two passenger elevators, and roughly 500 feet of frontage along Jamaica Avenue. The property also features 12 loading docks and a 30,000-square-foot parking lot with more than 100 spaces. The site is also close to Jamaica Station, the largest public-transit hub in Queens.

“With the growing importance placed on expedient last-mile delivery, today’s industrial sector tenants require proximity to population centers,” Josh Zegen, co-founder & managing principal of MRC, said in a prepared statement. “[T]he combination of the site’s ideal location on Jamaica Avenue and our planned significant capital improvements will make this an attractive choice to numerous warehousing, distribution, and manufacturing users throughout the city.”

“[T]he buildings, once upgraded, will be attractive to a number of users who are priced out of the traditional industrial locations in the NYC metro area,” added Michael Bernstein, principal of Artemis.

A Cushman & Wakefield brokerage team including Adam Doneger, Adam Spies, Josh King and Avery Silverstein sourced Artemis as the equity partner in this transaction. A Pinnacle Realty team led by Decio Baio, Fredric Stein, Steve Nadeland and Paul Bralower represented the seller.