Realterm Pays $103M for New York Last-Mile Facilities

February 4, 2022

Investment In Focus Industrial New YorkMoreNews Northeast

Amazon and AERCO International are the properties' long-term tenants.

100-400 Oritani Drive. Image courtesy of Realterm

Realterm has expanded its last-mile portfolio with the acquisition of two distribution facilities in Blauvelt, N.Y. The properties are long-term leased to Amazon and AERCO International, CommercialEdge data shows. Onix Equities pocketed $102.5 million from the sale. CBRE Vice Chairman Brian Fiumara represented the seller in the transaction.

The former owner acquired the facilities at 100-400 Oritani Drive in 2019 from MBA Contractors for $33 million. CBRE handled the leasing negotiations under Onix Equities and brought in Amazon in 2020. AERCO International had been at the location since 2011.

Amazon is operating at 200 and 400 Oritani Drive. The 21.8-acre property offers 175,775 square feet of warehouse space across two buildings. The warehouses feature 23 dock-high loading doors and 80- to 100-foot truck courts. AERCO International, a water heater and boiler manufacturer, occupies the 131,500 square-foot facility at 100 Oritani Drive. The climate-controlled warehouse includes a two-level office build-out and 10 dock-high loading doors.

The Rockland County facilities are 33 miles north of the Redhook Terminal and some 30 miles from Midtown Manhattan, via Interstate 287.

The e-commerce explosion since the start of the pandemic drove demand for last-mile facilities to skyrocket. Continuing its 2021 buying spree, Realterm purchased another fully leased last-mile portfolio in January. The company acquired 541,400 square feet of warehouse space across four facilities in Kentucky, Michigan and Illinois. The transaction is just one of more than a dozen deals the company closed since the start of the year.

Amazon-leased facilities continue to attract interest from investors. In November of last year, a Phoenix last-mile warehouse occupied by the tech giant sold for nearly $75 million shortly after completion, while large distribution centers operated by the company are trading for nine-digit numbers.