Two Trees Pays $100M For 2 Sites In Gowanus
Two Trees is looking to capitalize on the city’s burgeoning industrial market, paying in excess of $100M for two large, side-by-side industrial sites on the Gowanus Canal.
The firm is paying around $65M to Hamilton Plaza Associates for a site at 1-37 12th St. that features a 70K SF building with a Pathmark grocery store and a 100K SF parking lot, Crain’s New York Business reports.
It is also buying a long-term ground lease for a 9-acre property next door at 118 Second Ave. from Forest City Ratner, according to Crain's. That site has a Lowe’s Home Improvement Store and a large parking lot.
Though it is not clear how much Two Trees will pay for the site, sources with knowledge of the deal told Crain’s the total cost was more than $100M. Both the properties are in an Industrial Business Zone, making a residential conversion unlikely. Representatives for Two Trees and Forest City would not comment on or confirm the deals.
Industrial land has become increasingly popular with investors, with the e-commerce craze leading to a big need for distribution centers across the country.
Warehouse builder Prologis, for example, is expanding its presence in the city. The firm is marketing its 205K SF, two-level warehouse at 1055 Bronx River Ave., which was formerly the home of an ABC Carpet & Home outlet store.
The company paid $265M to SunCap Property Group’s FedEx’s delivery center in Maspeth, Queens, Crain’s reported earlier this month. The purchase of the 350K SF facility was reportedly the city’s priciest industrial deal.
