Two years after making it available to buyers, Blackstone offloaded a warehouse adjacent to LaGuardia Airport in Queens.
An investment fund managed by Morgan Stanley Real Estate Investing acquired the property at 83-15 24th Avenue and the adjacent parking lot for $86.7 million, the Commercial Observer reported. When considering the 117,000-square-foot facility, the deal breaks down to $741 per square foot.
The facility spans two parcels in East Elmhurst, while the parking lot takes up nearly two acres. FedEx occupies the entire warehouse and still has more than 17 years remaining on its lease, according to JLL. FedEx uses the property to support last-mile distribution.
Blackstone made the deal through its portfolio company, Revantage. The Morgan Stanley fund used a limited liability company to make the acquisition.
A JLL team including Tyler Peck, Andrew Scandalios and John Huguenard arranged the deal. Blackstone and Morgan Stanley declined comment.
Blackstone acquired the warehouse from Steel Equities in 2019 for $55.5 million, roughly a decade after Steel acquired the building for $22.7 million. Nuveen provided nearly $39 million in acquisition financing to Blackstone.
Two years ago, however, the private equity giant decided to list a six-property industrial portfolio comprising assets in and around New York City. The portfolio totaled 929,000 square feet and was fully leased with one tenant occupying each property. The weighted average remaining lease term was 6.13 years.
That listing came after Blackstone’s $3.1 billion industrial sale to Prologis. That portfolio deal consisted of 70 properties, mostly warehouses and distribution centers in markets across the country, spanning almost 14 million square feet.
As of the end of the third quarter, new industrial leases in the city’s outer boroughs this year totaled 2.6 million square feet, according to Cushman & Wakefield, a 6.4 percent jump year over year.
— Holden Walter-Warner
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Blackstone buys LaGuardia warehouse for $56M with financing from Nuveen
Blackstone lists six industrial properties in NYC, Long Island
Prologis pays $3.1B for Blackstone industrial portfolio
