Terreno Realty pays $156.2M to Thor Equities for industrial in Red Hook

Terreno Realty Corporation through the entity Terreno 280 Richards LLC paid $156.2 million to Thor Equities through the entity 280 Richards Street LLC for the industrial building (E1) at 270 Richards Street, also known as 280 Richards Street, in Red Hook, Brooklyn. The expected use is cash flowing. Amazon is a tenant in the building.
The deal closed on December 11, 2024 and was recorded on December 18, 2024. The property has 150,977 square feet of built space and 1,179,882 square feet of additional air rights for a total buildable of 1,333,200 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,034 and the price per buildable square foot is $117 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.)
The seller bought the property on January 29, 2021, for $78 million. The signatory for Thor Equities was Morris Missry. The signatory for Terreno Realty Corporation was Cody Saunders. The contract date was October 24, 2024. The Real Deal reported on the transaction when it went into contract.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Terreno Realty Corporation purchased 25 properties in five transactions for a total of $296.1 million and has no record it sold any properties over the past 24 months.
The seller Thor Equities purchased two properties in two transactions for a total of $66.6 million and sold 11 properties in eight transactions for a total of $291.3 million over the same time period.

The property

The industrial building in Red Hook has 150,977 square feet of built space and 1,179,882 square feet of additional air rights for a total buildable of 1,333,200 square feet according to a PincusCo analysis of city data. The parcel has frontage of 258 feet and is 437 feet deep with a total lot size of 666,600 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $12.5 million. The most recent loan totaled $75.4 million and was provided by Athene Holding on January 29, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $6,025 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 2, 2024. On the lot, there is one active new building construction project, 321183465, for a 638,548 square-foot B building. The project was submitted by Thor Equities and filed by Melissa Gliatta with plans filed June 2, 2016 and it has not been permitted yet.

The neighborhood

In Red Hook, The bulk, or 40 percent of the 11.8 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 24 percent of the space. In sales, Red Hook has had very little sales volume relative to other neighborhoods with $103.9 million in sales volume in the last two years. For development, Red Hook has near average amount of major developments among other neighborhoods and is the 15th highest in Brooklyn. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the seven commercial properties representing 994,405 square feet of the 1,564,677 square feet. The largest owner is Cbre Investment Management, followed by Thor Equities and then O’Connell Organization.
On the tax block, there was one new building construction project filed totaling 638,548 square feet. It is a 638,548 square-foot business (B) building submitted by Thor Equities and filed by Melissa Gliatta with plans filed June 2, 2016 and it has not been permitted yet.

The majority, or 55 percent of the 1.6 million square feet of built space are industrial buildings, with specialty buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Thor Equities owned at least 23 commercial properties with 346 residential units in New York City with 821,286 square feet and a city-determined market value of $191.9 million. (Market value is typically about 50% of actual value.) The portfolio has $306.8 million in debt, with top three lenders as MetLife, Athene Holding, and Prime Finance respectively. Within the portfolio, the bulk, or 48 percent of the 821,286 square feet of built space are elevator properties, with industrial properties next occupying 18 percent of the space. The bulk, or 58 percent of the built space, is in Manhattan, with Brooklyn next at 42 percent of the space.

The buyer

The PincusCo database currently indicates that Terreno Realty Corporation owned at least 28 commercial properties in New York City with 839,187 square feet and a city-determined market value of $92.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 91 percent of the 839,187 square feet of built space are industrial properties, with office properties next occupying 9 percent of the space. The bulk, or 74 percent of the built space, is in Queens, with Brooklyn next at 26 percent of the space.

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