Dov Hertz Spending $250M On Massive Sunset Park Development Site
DH Property Holdings, led by developer Dov Hertz, is reportedly in contract to pay $250M for an 18-acre development site on the Gowanus Canal.
Sunset Industrial Park, at 50 21st St., could feature as much as 1.6M SF of warehouse development, Crain’s New York Business reports.
The seller, 601 W Cos., was first seeking as much as $300M, according to Crain's. Hertz is partnering with investment firm Bridge Development Partners on the deal, which is set to close later this year.
Hertz is also planning a 350K SF, three-story distribution center on a 4-acre site in Red Hook. The company bought that site, at 640 Columbia St., with Goldman Sachs Asset Management for $47.5M in February.
The plan is to build a new warehouse and distribution hub on this site in Sunset Park, too, according to The Real Deal.
Hertz is one of the developers in the city who is banking that multistory warehouse space will be in high demand in the city, as the need for urban distribution centers goes up.
“I think people are still waiting to see if the [multistory] thesis bears out ... [But] we feel there’s a demand, and there’s very little in the way of supply.” Hertz told Bisnow earlier this year.
However, he said at Bisnow's industrial event in February that finding space to build those types of distribution centers on is a challenge.
