A rendering of Sunset Industrial Park, a planned four-story, 1.3 million-square-foot industrial project by Bridge Development Partners and DH Property Holdings — Courtesy: Bridge/DH Property Holdings
By Joshua Burd
Bridge Development Partners’ New Jersey-based team and DH Property Holdings have acquired an 18-acre site in Brooklyn, where they plan to develop a four-story distribution center with up to 1.3 million square feet of prime industrial space.
The partnership, along with equity partner Banner Oak Capital Partners, on Thursday announced the acquisition of Sunset Industrial Park, an existing complex along the Gowanus Canal. The firms now plan to demolish the existing structures and develop what they say will be the largest multistory distribution center of its kind in the U.S.
Located on Third Avenue between 19th and 21st streets, the facility will feature an intricate ramping system so that each of its four floors will be fully cross-docked and directly serviceable by full-size tractor trailers, according to a news release. The lower two stories will feature 32-foot clear heights, while the upper two stories will feature 28-foot clear heights.
“This will be a groundbreaking project for the U.S. industrial market, not only because of the building’s unprecedented design — essentially, four separate, stacked distribution centers — but also because of the enormous benefit it will have from a ‘last mile’ standpoint,” said Jeff Milanaik, the Northeast region partner Bridge Development Partners. “As e-commerce companies race to meet demand for same-day — and even two-hour — delivery, this facility will offer users the ultimate last mile access to New York City’s massive consumer base, including those in Williamsburg, Long Island City, and Manhattan.”
The project represents the latest multistory industrial development unveiled for Manhattan’s outer boroughs, where developable land is at premium but where builders see a major opportunity with large population centers. Meantime, Milanaik’s Parsippany-based team is the latest New Jersey developer to venture into the outer boroughs.
A JLL team led by Rob Kossar, Aaron Appel, Jonathan Schwartz and Mo Beler advised the buyers on the acquisition, arranged financing and will handle the leasing and management of the project. Additional team members include Leslie Lanne of the leasing group and Angela Alfano in property management.
“Demand for best-in-class distribution space in New York City’s outer boroughs has surged, as the major e-commerce users continue to heighten their focus on last mile delivery operations to service the city’s consumer populations,” said Tony Pricco, president of Bridge Development Partners. “Bridge, in partnership with DH Property Holdings, plans to be at the forefront of last mile development in the outer boroughs, and we are actively pursuing additional acquisition and development opportunities in the area.”
The demolition of Sunset Industrial Park’s existing structures is expected to begin in early 2020, with the start of ground-up development for the new distribution center expected by the end of 2020.
“Located within five miles of the Verrazano Bridge and within a one-hour drive of 13 million consumers, Sunset Industrial Park presents the perfect location for last mile distribution,” said Dov Hertz, president of DH Property Holdings. “It sits at the nexus of the inbound and outbound traffic needs of any third-party logistics, parcel carrier, or retailer looking to meet same, or next day, delivery in New York City.
“The partnership of Bridge and DHPH is the perfect marriage between a seasoned New York City operator, with 30 years of local knowledge and experience, and a best-in-class national industrial development firm.”
Banner Oak Capital Partners L.P. provided the equity, while Apollo Commercial Real Estate Finance Inc. is providing the debt on the project.
“We’re looking forward to continuing our strong partnership with Bridge as well as beginning a new partnership with DHPH on this project,” said Aaron Murff, partner at Banner Oak.