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Long Island Industrial
$35,629,000 Acquisition & CapEx Financing
Deer Park, NY | May 2023
Thorofare Capital has provided a $35,629,000 acquisition, CapEx and TI/LC financing Long Island Industrial, a 22.92-acre industrial site in Deer Park, New York.
The 4-property industrial portfolio totals 189,500 SF or warehouse and trucking logistics space, in addition to excess developable land parcels for potential industrial or residential future development. Acquired out of a bankruptcy auction, the financing allowed the opportunistic investor to secure the assets at a significant discount to their prior marketed asking prices.
The interest-only, structured whole loan carries an initial term of three years, in addition to two extension options.
The sponsor’s business plan is to reposition the properties with an overhaul renovation that includes site work, roof repairs, dock door replacement, electrical and mechanical upgrades and lease the buildings at market rental rates to various users who are seeking high quality warehouse space in the under-supplied, low-vacancy market.
Truck and logistics real estate have grown to be in high demand over the last 36 months, from the time of loan origination, with the continued growth e-commerce and last mile distribution with vacancy compressing inside of 1.00% and rent growth more than 8.00% annually according to CoStar.
The Long Island industrial market consists of 183 million square feet. In recent years, Long Island’s industrial market has benefitted from changing consumer habits that have bolstered e-commerce sales that have increased the necessity for warehouse and logistics space. Long Island experienced record-breaking net absorption in 2021, with several large leases signed by Fortune 500 companies.
The sponsor is a joint venture between an institutional insurance asset manager and a privately held, multi-billion-dollar, vertically integrated real estate investment platform that specializes in the investment development, and management of properties across all asset types in core urban markets around the globe totaling over 50 million square feet and gross asset values of $20 billion.