CenterPoint Properties Pays $117M for Bronx Logistics Facility

1080 Leggett Ave. Image courtesy of JLL

In a $116.5 million deal, CenterPoint Properties has purchased an urban logistics center at 1080 Leggett Ave., in New York City’s Bronx borough, from Goldman Sachs Asset Management and Blumenfeld Development Group Ltd. JLL Capital Markets arranged the transaction on behalf of the sellers.

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The 145,144-square-foot property is fully leased to a Fortune 50 company and features 22-foot ceiling heights, 18 loading docks, four drive-in doors and onsite parking.

Built in 1931, the property was purchased by Blumenfeld for $38.5 million in 2019, according to information provided by CommercialEdge.

The location is in the Hunts Point submarket, five minutes from the Hunts Point Food Distribution Center. The logistics facility is along the I-278 Bruckner Expressway, just 10 minutes from Manhattan’s Upper East Side and with direct access to regional transit, including I-295 and I-278.

The JLL Capital Markets team was led by Senior Managing Directors Andrew Scandalios and Rob Kossar, Senior Director Tyler Peck and Managing Director Karl Brumback. Executive Managing Director Leslie Lanne secured the tenant and assisted in the sale as well.

Building in the Bronx

Last September, a joint venture of Turnbridge Equities and Dune Real Estate Partners received $105 million in pre-development financing from J.P. Morgan for the Bronx Logistics Center, a four-story, 1.2-million-square-foot distribution center in the Hunts Point neighborhood. JLL arranged the debt financing.

Despite the pandemic, the Port of New York and New Jersey had a record year for cargo volume in 2020, which, in tandem with e-commerce growth, helped keep industrial indicators strong in New York City’s outer boroughs, according to a first-quarter report from Cushman & Wakefield.

In the Bronx, overall vacancy was 6.3 percent, on an inventory of 19.0 million square feet. First-quarter absorption was a negative 6,500 square feet, and 691,000 square feet was under construction. The overall weighted-average net rent for warehouse/distribution space stood at $20.21 per square foot per year, again according to Cushman & Wakefield.