The $30 million purchase of 10 acres of land in Bay Shore has set a new high–water mark for industrial property on Long Island.
Rockefeller Group, a Morristown, N.J. real estate investment and development firm, bought the vacant 10-acre parcel at 55 Paradise Lane from Rubie’s Costume Company, according to industry sources.
The recently closed deal for $3 million an acre is a record for industrial-zoned property here and reflects the strength of the area’s white-hot industrial market and demand for warehousing and distribution facilities from e-commerce businesses.
The property is approved for a 180,000-square-foot industrial building and the buyer is currently seeking building permits for that development. It is unclear if Rockefeller Group, a subsidiary of Mitsubishi Estate Co., already has a tenant for its new property.
The Bay Shore vacant land is already surrounded by more than 1 million square feet of high-ceiling industrial buildings.
The Bay Shore land acquisition is the latest jaw-dropper among brokers who work in the Long Island industrial real estate sector. Six months ago, a subsidiary of The Travelers Companies, headquartered in Hartford, Conn., purchased a newly constructed, 195,610-square-foot warehouse and distribution complex in Hicksville that’s leased to Home Depot for $74.5 million, a whopping $380 a square foot.
The vacancy rate for industrial property in Suffolk County in the first quarter of the year was just 3.5 percent, according to a report from Cushman & Wakefield. That’s the lowest vacancy rate of any of the Island’s commercial real estate sectors and reflects the overwhelming demand for industrial space.
The JLL Capital Markets Group represented the buyer, while seller Rubie’s Costume Company was self-represented in the sales transaction.