DH Property Holdings Acquires Ground Lease For Industrial Site In Red Hook, Brooklyn | 537-555 Columbia Street | Sean Sears, Jidan Kim, Brian Leary | Industrial | Loan

Summary

Loan

NEW YORK

Industrial

110,000 sqft

Ground Lease: DH Property Holdings, led by Dov Hertz, has signed a 99-year triple-net lease deal for the property located at 537-555 Columbia Street in Red Hook, Brooklyn. The deal was struck with James Moriarty of Moriarty & Sons, the site’s longtime owner. The lease is valued at approximately $280 million, with rent increases scheduled every decade or so. Hertz declined to disclose the final lease terms due to a confidentiality agreement. DH Property Holdings plans to develop an 88,000-square-foot industrial building on the site, targeting retailers in need of e-commerce supply chain platforms and third-party logistics companies.

Summary of transaction details

Property Type: Industrial
Transaction Amount: $280,000,000
Price per Buildable Square Foot: $10
Address: 537-555 Columbia Street, New York
Market: Red Hook, Brooklyn

CPEX Real Estate, represented by Brian Leary, Jidan Kim, and Sean Sears, brokered the deal between DH Property Holdings and Moriarty & Sons. Their expertise in the Red Hook market made them well-suited for facilitating this transaction.

Players

All
4

Agents
3
Agencies
1

$3.1M Sold

$22.4M Sold

$22.4M Sold

Bridge Property Advisor

Details

Deal Summary

FINANCED

IMAGE: LEASE: IMAGE: Dov Hertz DATE: 05/18/2018 ADDRESS: 537-555 Columbia Street CITY: New York MARKET: Red Hook, Brooklyn ASSET TYPE: Industrial LESSOR: James Moriarty – Moriarty & Sons LESSEE: DH Property Holdings - Dov Hertz PRICE: $280,000,000 PBSF: $10 BROKER: CPEX Real Estate - Brian Leary, Jidan Kim and Sean Sears NOTES: Earlier this month, the developer inked a 99-year triple-net-lease deal with the site’s longtime owner for close to the asking rent of $990,000 a year, or $10 a buildable square foot, sources familiar with the deal told Commercial Observer. DH Property will pay roughly $280 million over the term of the lease, because of rent increases every decade or so. Hertz declined to disclose the final lease terms, citing a confidentiality agreement. Hertz plans to develop an 88,000-square-foot industrial building on the site between Creamer and Bay Streets, across from Red Hook Park by the waterfront. His firm intends to market the site to retailers looking to expand their e-commerce supply chain platforms and third-party logistics companies. (CO)

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Address537-555 Columbia Street

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