DH Property Holdings, LLC, a leading developer of urban infill industrial logistics facilities, and the Real Estate business within Goldman Sachs Asset Management (Goldman Sachs) have sold their interest in 640 Columbia Street, a three-story, 400,000-square-foot logistics facility in Red Hook, Brooklyn, to CBRE Investment Management.
DHPH developed 640 Columbia on spec and executed a long-term lease on the facility with a global, credit tenant. The property stands in close proximity to Manhattan, Brooklyn and Queens, providing direct, rapid access to more than 13.5 million people, the largest concentration of e-commerce consumers in the nation.
The facility sits on four acres and is the first multi-story logistics facility on the East Coast. 640 Columbia boasts best-in-class architecture and features ramp access to the loading docks on the second floor, as well as internal ramps connecting the three floors and a dedicated private elevator servicing the third floor.
Founded in 2016 by Dov Hertz, DHPH is a Manhattan-based industrial real estate development, investment and management firm that has been at the forefront of the industrial logistics trend, developing market-leading distribution warehouses in complex and challenging urban environments.
"640 Columbia is an extraordinary facility that offers unparalleled access to Manhattan, Brooklyn, Queens and the greater metropolitan region," said Hertz. "It is the first multi-story property operating in the northeast and provides a powerful long-term investment while positioning its tenants to outperform competitors in the market."
"This property, a first in this market, benefited from the early recognition of the e-commerce growth trend," said Dirk Degenaars, Managing Director in Real Estate within Goldman Sachs Asset Management. "It is ideally positioned to support tenants as they accommodate the evolving delivery needs of their tenants now and in the future."
"We believe that heightened demand for urban, infill logistics facilities, spurred by shrinking delivery windows and rising consumer expectations, will sustain strong demand for logistics space over the next few years," said Mary Lang, Head of Americas Direct Logistics Strategies for CBRE Investment Management. "640 Columbia is located at the confluence of inbound deliveries to the New York metropolitan area and serves as a premier last-mile facility to some of the densest zip codes in the U.S., making this a strategic fit with our broader logistics strategy."
A team led by Adam Spies, Doug Harmon and Josh King of Cushman and Wakefield represented DHPH and Goldman Sachs in the sale of 640 Columbia.
The sale of 640 Columbia follows the recent sale by DHPH of 55 Bay Street, an 85,000-square-foot, single-story, Class-A distribution center also in Red Hook. This facility, the first speculatively built industrial building in New York City in over half a century, was leased to Amazon Fresh prior to the sale.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $146.8 billion in assets under management* as of March 31, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive. CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world's largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE's data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management's presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.
About DH Property Holdings
Founded in 2016 by company President Dov Hertz, DH Property Holdings is a Manhattan-based industrial real estate development, investment and management firm with an extensive track record of acquiring and developing best-in-class assets. DHPH currently has over 5 million square feet, or over $2.5 billion, of Class-A urban warehouses complete or underway throughout the Northeast, including New York, New Jersey, Boston and Philadelphia. In addition to 640 Columbia Street, notable DHPH projects include the 18-acre, 1.8-million-square-foot Sunset Industrial Park development in Brooklyn; the 65-acre 1900 South Avenue in Staten Island; the 69-acre 5000 Richmond Street, and the 21-acre 9801 Bluegrass Road in Philadelphia.
About Goldman Sachs Asset Management Real Estate
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world's leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market-overseeing more than $2 trillion in assets under supervision worldwide as of March 31, 2022. Driven by a passion for our clients' performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1991, the Real Estate business within Goldman Sachs Asset Management is one of the largest investors in real estate with over $50 billion in assets invested since 2012 across the spectrum of investment strategies from core to opportunistic. Our global team invests across all sectors with deep expertise across the capital structure, in assets ranging from single properties to large portfolios, through senior mortgages, mezzanine debt and equity. Follow us on LinkedIn.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in over 400 offices and approximately 60 countries. In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.