JFK Air Cargo Portfolio Sold for $57.2M
28 Jan, 2013, Queens, NY
Commercial real estate services firm Cushman & Wakefield, Inc. has completed the $57.2 million sale of the JFK Cargo Portfolio, encompassing 12 buildings totaling 481,000 square feet and eight land parcels adjacent to JFK International Airport's runway system in Queens, N.Y. Andrew Merin, David Bernhaut, Gary Gabriel and Kyle Schmidt of the firm's Metropolitan Area Capital Markets Group represented seller Prologis, Inc. and procured the buyer, TA Associates Realty.
"Opportunities to acquire portfolios in the JFK market occur every other decade. The proximity to the airport and extreme competition constraints made this a once-in-a-generation offering," said Gabriel. "This location provides access to more than 100 international destinations, as well as being one day's drive to more than 110 million consumers - one-third of the U.S. population. And the New York metropolitan area has a larger GDP than all but 14 countries."
Located between the Belt Parkway and Nassau and Rockaway boulevards, the JFK Cargo Portfolio's 12 existing buildings range in size from 10,000 to 73,000 square feet and were constructed between 1966 and 1994. The single-story buildings were 93 percent occupied at the time of sale, primarily by freight forwarders, including Aramex International, Gourmet Boutique, Aaron Rents Inc. and Amerijet. The eight land parcels, currently in use as parking lots, provide room for additional expansion on-site. The sale price factors out to $120 per square foot for the existing building space.
On the market for less than six months, the offering attracted "considerable interest," said Schmidt. "We gave more than 20 tours to investors from all over - institutional, local buyers, the full spectrum of potential investors seeking access to this unmatched opportunity, one that they will likely never see again."