Prologis, known for its global leadership in logistics real estate, has made a move to expand its holdings in the New York City area with two significant acquisitions in Brooklyn. In a first transaction, the company purchased a 10-acre waterfront site in Greenpoint from ExxonMobil for $122 million. The location at 440 Kingsland Ave., which is poised for redevelopment, sits conveniently by Newtown Creek with potential uses including logistics facility or vehicle storage, as well as possible integration into the city's Blue Highways initiative to boost goods transportation via waterways.
According to Crain's New York, the Northeast Greenpoint area, which was previously home to various petroleum companies since the 1830s, suffered a significant oil spill in 1978, and cleanup efforts under the state's Greenpoint Petroleum Remediation Project are ongoing. Jeremiah Kane, senior vice president of value added investments at Prologis, told Crain's that the acquisition was "a strategic buy", with potential to "meet the increased demand for high quality, well-located logistics real estate."
In a second transaction, Prologis is taking on a near 17-acre undeveloped stretch in Coney Island, formerly home to a manufactured gas plant that ceased operations in the 1950s. Environmental remediation on this parcel, located at 2731 West 12th St., was completed in 2008 in a manner compliant with New York State Department of Environmental Conservation standards. Sold by National Grid, which no longer utilized the space for their operations, the property provides strategic connectivity for distribution given its proximity to major thoroughfares and all of New York City's major airports.
JLL Capital Markets, who completed the sale, highlighted the rarity and potential for repositioning such a sizeable parcel of land within New York City's boundaries. Hall Oster, managing director at JLL, emphasized the property's optimal location stating, "It’s rare to have the opportunity to re-position such a large parcel of raw land inside of New York City, particularly in a location that is nearly equidistant to all major airports, Manhattan, Queens, Long Island and New Jersey."
These acquisitions represent Prologis' continued commitment to expanding its industrial real estate portfolio in key urban markets. They follow the company's earlier investments in New York, including a $51 million purchase of a Maspeth radio station site in 2020 and a $3.1 billion deal for warehouse and industrial properties throughout the country from Blackstone last year. Prologis' moves come in the context of a strong market for industrial real estate which, despite a slight softening per Cushman & Wakefield data, reflects a persistent demand outpacing supply in the city's outer boroughs.
