Dov Hertz forms JV to built next distribution hub

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Dov Hertz’s DH Property Holdings has acquired a 45-acre development
site at 1900 South Avenue on Staten Island’s western coast for a reported $65
million.

Cushman & Wakefield served as the exclusive advisor to
DH Property Holdings to set up a joint venture to developed the property as a warehouse/distribution
hub.

An Equity, Debt & Structured Finance team of John
Alascio, Sri Vankayala, Chuck Kohaut, TJ Sullivan and Emily Johansen arranged acquisition
financing, which was provided by CIM Group.

“The DH Property Holdings team did an outstanding job
bringing this unique site under contract to purchase off market, recognizing
its irreplaceable location in one of the most sought-after industrial markets
in the country,” said Alascio.

“DH Property Holdings immediately recognized the site’s
tremendous potential and structured a joint venture partnership to redevelop
the parcel, which will have wide-ranging appeal in the modern industrial market
once fully realized.”

1900 South Avenue (pictured top) is a 44-acre development site that can accommodate more than 420,000 s/f of Class A warehouse/distribution product.

The site is zoned as of right for industrial use and is
partially encumbered by three tenants, which may remain in place during and
after a contemplated development. The site offers multimodal transportation
options via six rail spurs that connect to the national CSX system and 650 feet
of bulkhead on the Arthur Kill.

“CIM quickly identified the site’s favorable location and unique competitive advantages in the New York Metropolitan market and was further enticed by the local sponsorship with expertise in this sort of complex project,” added Sullivan. “CIM was thoughtful and aggressive with loan terms, which enabled DH Property Holdings to acquire the site and begin the predevelopment process.”

DOV HERTZ

Hertz added, “We are very excited to add 1900 South Avenue
to our portfolio of trophy industrial development sites in the New York
Metropolitan Area. This site offers a rare combination of accessibility,
scalability and multimodal transportation utility that makes for an ideal
modern industrial site.”

Since founding DH Property Holdings in 2016, Hertz has built a portfolio of properties worth over $1 billion. It is currently developing over two million square feet of new industrial space, including the first multi-story last mile distribution center on the east coast.

The property sellers were Robert and Neil Vanderbilt. 

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