A 130,565-square-foot warehouse and distribution center in Shirley that’s leased to Amazon has sold for $30.7 million.
An “institutional client” of BlackRock Real Assets purchased the complex on 12.65 acres at 100 Precision Drive.
Woodmont Industrial Partners, an affiliate of Fairfield, N.J.-based Woodmont Properties, bought the property for around $7.2 million in Sept. 2019.
Since then, Woodmont executed a capital improvements program of infrastructure and building upgrades that included a new sprinkler system, LED lighting, electric vehicle conduit for future charging stations, new parking lot upgrades as well as a new HVAC system, new roof and additional dock doors.
“When we first acquired the property we knew it had incredible potential, but we also knew it would require a strategic transformation to create a Class-A industrial facility that would attract quality tenancy,” Eric Witmondt, CEO of Woodmont Properties, said in a company statement. “Today, we’re proud of the final product and the national logistics tenant it ultimately attracted. We’ve also delivered a building that features the best in sustainable practices and helps meet a demand for state-of-the-art distribution centers servicing the Hamptons, Montauk, and broader Long Island market.”
Originally constructed in 2002 for a division of Milwaukee, Wisc.-based Rockwell Automation, which manufactures industrial robots, the complex originally cost $17 million to develop. It was designed by Farmingdale-based Ehasz Giacalone Associates and built by East Setauket-based Tritec Real Estate.
The property was sold to an affiliate of Cammeby’s International in 2006, which defaulted on its $17 million commercial mortgage-backed securities loan for the facility in 2014, just months after Rockwell’s lease expired and the company vacated in Nov. 2013. The property was foreclosed in 2016, according to Trepp, which tracks the CMBS sector.
Amazon, which took occupancy of the property in Sept. 2020 after signing a long-term lease, also utilizes a neighboring 6.5-acre parcel of land that serves as a 220-space parking lot complete with conduits capable of charging EV fleets.
Amazon is seeking to open as many as 30 distribution centers on Long Island amid a very tight industrial real estate market, where many e-commerce firms are competing for property.