NEW YORK CITY—A partnership of Madison Realty Capital and Artemis Real Estate Partners has acquired two adjacent industrial buildings on Jamaica Avenue in Queens for $78 million.
New York City-based Madison Realty Capital and Artemis, which is headquartered in Chevy Chase, MD, purchased the two properties totaling 613,000 square feet at 184-10 and 184-60 Jamaica Ave. in Jamaica from a long-term family ownership.
The joint venture states it plans to upgrade both buildings that are currently 75% occupied. The capital improvements will include enhancing the building envelope, mechanical infrastructure, and elevators. The investment will seek to capitalize on the increasing demand from industrial and office/industrial flex users looking for quality industrial space within an increasingly supply-constrained New York City market, Madison Realty officials note. More than 10 million square feet of industrial space in New York City has been taken offline via demolition or repurposing of space for alternative use they say.
A Cushman & Wakefield brokerage team of Adam Doneger, Adam Spies, Josh King and Avery Silverstein sourced Artemis as the equity partner in the transaction. A Pinnacle Realty team led by Decio Baio, Fredric Stein, Steve Nadel and Paul Bralower represented the seller in the transaction.
“This acquisition is another example of how we are able to utilize our local market knowledge and vertically integrated platform to capitalize on an investment opportunity that addresses a growing demand in the market,” says Josh Zegen, co-founder and managing principal of MRC. “With the growing importance placed on expedient last mile delivery, today’s industrial sector tenants require proximity to population centers. We believe strongly that the combination of the site’s ideal location on Jamaica Avenue and our planned significant capital improvements will make this an attractive choice to numerous warehousing, distribution, and manufacturing users throughout the city.”
Michael Bernstein, principal of Artemis Real Estate Partners, adds, “We believe that the buildings, once upgraded, will be attractive to a number of users who are priced out of the traditional industrial locations in the New York City metro area,”
Among the properties notable industrial/warehouse tenants include French Connection, Hanky Panky, and Gotham Greens. The buildings, originally built in 1923 and 1954, feature five freight elevators, two passenger elevators, and approximately 500 feet of frontage along Jamaica Avenue. The property also includes 12 loading docks and a parking lot that accommodates more than 100 spaces.