Sitex Group, Global Logistics value property at $112M following lease buy outs at industrial property in Glendale
Sitex Group and its equity partner Singapore-based Global Logistic Properties valued three industrial parcels at $112 million in two filings following the $31.5 million buy outs of subleases on the properties.
In the first transaction, Sitex and Global Logistic Properties (GLP) through the entity 576-578 Otto Road LLC valued the properties at $72 million for 67-25 Otto Road and 66-35 Otto Road in Glendale. The deal closed on June 11, 2020, and was recorded on June 23, 2020. The transaction consists of 2 parcels, including the tax class fireproof warehouse (E1). The parcel(s) have total development potential of 168,629 square feet.
The average sale price per square foot is $427.
Immediately prior to the $112 million sale to GLP, Sitex paid a total of $31.5 million to buy out two leases. It paid $14 million to terminate a sublease with a Midtown-based Arenson Office Furnishings and $17.5 million to terminate a sublease controlled by Smali “Alex” Amanollahi. A ground lease was also terminated at the time of this sale.
GLP sold a portfolio of logistics properties to Blackstone Group for $18.7 billion last year, reported as the largest private property sale ever.
The last time these properties sold were January 31, 2019, when Sitex bought them for $36 million. Brian Milberg, an executive with Sitex, was the signatory for both Sitex and GLP in the recent transaction. The contract date was June 11, 2020, the same as the closing date.
Over the past five years, there has been one NYC Department of Buildings permit application filed for this parcel valued at more than $20,000. There was one renovation/alteration project (A2) applied for with a total estimated value of $27,528.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
In the second transaction, the new ownership entity is 579 Otto Road LLC, and the property is valued at $40 million for 66-31 Otto Road in Glendale. The transfer closed on June 11, 2020, and was recorded on June 23, 2020. The transaction consists of 1 parcel, including the tax class miscellaneous warehouse (E9). The property is 91,000 square feet. The parcel(s) have total development potential of 124,439 square feet.
The average sale price per square foot is $321.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
Correction: A prior version of this story incorrectly reported these as sales, when in fact the parties are equity partners and reclassified the value of the properties following the buy out of leases.