Prologis has purchased a Brooklyn logistics facility in Greenpoint for $122 million — but what it plans to do with it is up in the air.
The site, called 440 Kingsland Ave., could be used for vehicle storage, or it may remain as a logistics center, according to a report from Crain's New York Business. Another potential use of the property could be to help boost the delivery and transportation of products through New York City's five boroughs. That would support the Blue Highways initiative in the city.
But either way, the 10-acre site's ownership will change hands from ExxonMobil. TerraCRG brokered the deal for the gas and oil giant.
"As we evaluate use options for the site, whether it is a modern logistics facility, vehicle storage or enhancing freight transportation by leveraging the city's Blue Highways initiative, we are well positioned to meet the increased demand for high quality, well-located logistics real estate," Jeremiah Kane, senior vice president of value added investments at Prologis, said.
In September, national rents in the industrial space averaged $8.16 per square foot, according to a report from the CommercialEdge. That's up five cents from August and 7.1 percent year-over-year. Particularly, the Northeast saw a slowdown across all of its top markets. Notably, while Philadelphia led in regional construction overall, the city saw its pipeline shrink from 16.1 million square feet to 12.7 million square feet over the past year.
According to Prologis, it has 220 industrial properties accounting for more than 55 million square feet in New York and New Jersey. In those markets, it serves 340 customers.