CenterPoint Adds Amazon-Leased Warehouse in the Bronx
The investor recently bought a neighboring facility, which is also occupied by Amazon.
511 Barry Street
CenterPoint Properties has acquired 511 Barry Street, a 154,462-square-foot Bronx warehouse, from Innovo Property Group in an off-market transaction.
The asset changed hands for $119 million, as first reported by the Commercial Observer. The property last traded in 2019, when Innovo Property Group acquired it for $54.3 million, CommercialEdge data shows.
The acquisition comes three months after CenterPoint paid $116.5 million for 1080 Leggett Avenue, a 145,114-square-foot distribution center adjacent to 511 Barry Street, marking CenterPoint’s first-ever Bronx purchase.
Amazon’s presence at both locations is likely to have determined CenterPoint to pay more than double the 2019 sales price. Earlier this year in May, the tech giant leased 1080 Leggett Avenue one month after signing the lease for 511 Barry Street, Welcome2The Bronx reported.
The 4.6-acre property at 511 Barry St. brings the industrial assemblage to a total of 9 acres. The food-grade warehouse is fitted with insulated ceilings and climate control for refrigerated storage. The one- and two-story property offers 13- and 22-foot clear heights, 36 loading docks and truck courts of 90 and 175 feet.
Developed in phases between 1961 and 1977, the asset underwent cosmetic renovations in 2005, CommercialEdge shows.
The warehouse is in the largest food distribution area in the world, according to CBRE’s listing page for the asset. The location in Hunts Point is roughly 15 miles from the Port of New York and New Jersey via FDR Drive or Interstate 278 and less than 17 miles from JFK International Airport. The property is also some 5 miles from Manhattan’s Upper East Side via Bruckner Expressway.
The CBRE team that helped close the transaction included Vice Chairman Brian Fiumara and Executive Vice President Doug Middleton and Vice President Ryan Silber from the firm’s New York Investment Properties group.
The JLL team included Vice Chairman Rob Kossar, Senior Director Tyler Peck, Managing Director Leslie Lanne and Senior Managing Director Andrew Scandalios.
E-Commerce propels industrial growth
The facility’s urban location and spacious loading and parking area were among key factors behind the acquisition, CenterPoint Investment Officer Mac Lee said in prepared remarks.
Over the last two years, approximately 7 percent of all industrial transactions were of properties leased by Amazon, a recent CommercialEdge report indicates. The company has also been a major driver for development. As of February, four of the 10 largest industrial projects in the U.S. were Amazon-dedicated.
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