1.6% Cap Rate for Industrial Buildings
A stock sale and a strong tenant attracted buyers to three industrial warehouse properties. Investors paid a low capitalization rate of just 1.6% — and a high price of $7.1 million — for the buildings at 57-09 37th Ave., 57-12 37th Ave. and 34-56 58th St. in the Woodside neighborhood of Queens.
“With its great location and built-in tenancy, we knew there would be high interest in this portfolio,” said Richard Sullivan, an associate with Avison Young New York Capital Markets, who with Charles Kingsley, Neil Helman, Vincent Carrega and Jon Epstein represented the ownership in the transaction.
The properties are currently occupied by Frost Productions. The lease runs through February 2019. The 25,250-square-foot portfolio is also structured as a C-Corporation, so the seller could structure the transaction as a stock sale. Eager buyers paid $453 per-square-foot for the portfolio.
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