Goldman Sachs, DH Property Holdings sell Red Hook logistics facility to CBRE IM

DH Property Holdings and the Real Estate business within Goldman Sachs Asset Management have sold their interest in 640 Columbia Street, a three-story, 400,000-square-foot logistics facility in Red Hook, Brooklyn, to CBRE Investment Management.

DHPH developed 640 Columbia on spec and executed a long-term lease on the facility with a global, credit tenant.

The property stands in close proximity to Manhattan, Brooklyn and Queens, providing direct, rapid access to more than 13.5 million people, the largest concentration of e-commerce consumers in the nation.

The facility sits on four acres and is the first multi-story logistics facility on the east coast. 640 Columbia boasts best-in-class architecture and features ramp access to the loading docks on the second floor, as well as internal ramps connecting the three floors and a dedicated private elevator servicing the third floor.

“640 Columbia is an extraordinary facility that offers unparalleled access to Manhattan, Brooklyn, Queens and the greater metropolitan region,” said  Dov Hertz, DHPH founder. “It is the first multi-story property operating in the northeast and provides a powerful long-term investment while positioning its tenants to outperform competitors in the market.”

“This property, a first in this market, benefited from the early recognition of the e-commerce growth trend,” said Dirk Degenaars, Managing Director in Real Estate within Goldman Sachs Asset Management. “It is ideally positioned to support tenants as they accommodate the evolving delivery needs of their tenants now and in the future.”

“We believe that heightened demand for urban, infill logistics facilities, spurred by shrinking delivery windows and rising consumer expectations, will sustain strong demand for logistics space over the next few years,” said Mary Lang, Head of Americas Direct Logistics Strategies for CBRE Investment Management. “640 Columbia is located at the confluence of inbound deliveries to the New York metropolitan area and serves as a premier last-mile facility to some of the densest zip codes in the U.S., making this a strategic fit with our broader logistics strategy.”

A team led by Adam Spies, Doug Harmon and Josh King of Cushman and Wakefield represented DHPH and Goldman Sachs in the sale of 640 Columbia.

The sale of 640 Columbia follows the recent sale by DHPH of 55 Bay Street, an 85,000-square-foot, single-story, Class-A distribution center also in Red Hook. This facility, the first speculatively built industrial building in New York City in over half a century, was leased to Amazon Fresh prior to the sale.