Terreno pays Blackstone $246M for 21 industrial properties near JFK, purchased for $130M

Terreno Realty Corporation through the entity Terreno Trex I, LLC acquired from Blackstone Group through the entity Bpp Tango Industrial Lf1 Master Holdings LLC valued at $246 million for a portfolio of 21 properties near John F. Kennedy International Airport including the industrial building (E1) at 182-17 150th Avenue, the industrial building (E1) at 179-02 150th Avenue, and the industrial building (E1) at 145-30 157th Street in Brookville, Queens.
The deal closed on May 2, 2024 and was recorded on May 9, 2024. The 21 properties have 498,759 square feet of built space and 172,041 square feet of additional air rights for a total buildable of 603,107 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $493 and the price per buildable square foot is $407 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
This is an entity-level purchase, not a deed transfer. It is part of a $365 million transaction of a national portfolio between Blackstone Group and Terreno. The press release did not disclose the seller. Blackstone bought the 21 properties from TA Realty in 2019 for a total of $130 million in four separate transactions, $56,982,245, $48,602,986, $23,181,317  and a ground lease $1,233,450.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 182-17 150th Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Terreno Realty Corporation purchased two properties in two transactions for a total of $35 million and has no record it sold any properties over the past 24 months.
The seller Blackstone Group purchased 20 properties in eight transactions for a total of $1.3 billion and sold 13 properties in three transactions for a total of $648.3 million over the same time period.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation and $2,870 in OATH penalties in the last year.

Development

For the tax lot buildings, two out of the 21 buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Brookville, The majority, or 68 percent of the 4.9 million square feet of commercial built space are industrial buildings, with office buildings next occupying 12 percent of the space. In sales, Brookville has the 38th highest sale turnover among other neighborhoods in Queens with $30.9 million in sales volume in the last two years. For development, Brookville has had very little major development activity relative to other neighborhoods.It had 259,082 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On the tax block of 182-17 150th Avenue, PincusCo has identified the owner of the one commercial property that spans that spans 92,850 square feet on the block.The identified owner is Blackstone Group.
There are no active new building construction projects on this tax block.

All properties are industrial.

The seller

The PincusCo database currently indicates that Blackstone Group owned at least 61 commercial properties with 14,221 residential units in New York City with 17,439,138 square feet and a city-determined market value of $3.2 billion. (Market value is typically about 50% of actual value.) The portfolio has $1.6 billion in debt, with top three lenders as Morgan Stanley, Wells Fargo, and New York Life Insurance Company respectively. Within the portfolio, the bulk, or 88 percent of the 17,439,138 square feet of built space are elevator properties, with industrial properties next occupying 6 percent of the space. The bulk, or 81 percent of the built space, is in Manhattan, with Queens next at 15 percent of the space.

The buyer

The PincusCo database currently indicates that Terreno Realty Corporation owned at least six commercial properties in New York City with 323,628 square feet and a city-determined market value of $32.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are industrial properties. The bulk, or 68 percent of the built space, is in Brooklyn, with Queens next at 32 percent of the space.

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