Jadian Capital acquired a fully leased 53-acre industrial outdoor storage site at 1800 and 1900 South Avenue on Staten Island from Dov Hertz\u2019s Kadima Industrial Partners for $167 million.
\n Hertz\u2019s DH Property Holdings bought the two parcels in 2020 and 2021 for a combined $79 million and invested roughly $10 million more in capital improvements before selling.
\n The site\u2019s road, rail, and maritime access, plus full occupancy from tenants City Asphalt and IAA, made it one of the most sought-after industrial sites in the region.<\/p>\n
Key Takeaways<\/p>\n
Real estate investment firm Jadian Capital has acquired a 53-acre industrial site<\/a> on Staten Island\u2019s west shore from Dov Hertz\u2019s Kadima Industrial Partners for $167 million, according to Commercial Observer. The deal, brokered by Cushman & Wakefield, covers the industrial outdoor storage (IOS) parcels at 1900 and 1800 South Avenue \u2014 one of the largest fully leased sites of its kind to trade in the city.<\/p>\n Get Smarter About What Matters in New York<\/p>\n Subscribe to our free newsletter covering the biggest commercial real estate stories across the five boroughs \u2014 delivered in just 5 minutes.<\/p>\n A Six-Year Hold<\/p>\n Hertz\u2019s DH Property Holdings assembled the site through two deals. The firm bought the parcels in 2020 and 2021 for a combined $79 million.<\/p>\n It then invested about $10 million in capital improvements. Hertz later brought the property to market through Kadima Industrial Partners, its industrial-focused investment arm.<\/p>\n The property sold for $167 million. That represents a gain of about $78 million over Hertz\u2019s roughly $89 million all-in cost basis. The return was nearly 90% over six years. The gain highlights growing institutional demand for scarce industrial outdoor storage.<\/p>\n The Details<\/p>\n The property is fully leased to City Asphalt, an asphalt mixing plant, and auction house IAA. Both tenants rely on large outdoor areas to park and stage equipment.<\/p>\n The site also has waterfront dock and rail access. Those features give tenants multiple ways to move materials and vehicles.<\/p>\n Cushman & Wakefield\u2019s Kyle Schmidt represented the seller. Gary Gabriel, Ryan Larkin, Seth Zuidema, Helen McCarthy Paul, Rico Murtha and Gurpreet Singh also worked on the deal.<\/p>\n Schmidt called the property \u201ca truly special industrial project\u201d because of its scale and combination of road, rail and maritime access. He noted that few NYC sites offer similar functionality on a fully leased 53-acre footprint.<\/p>\n It\u2019s unclear who represented Jadian Capital. Representatives for Jadian and Kadima did not immediately respond to requests for comment. The Real Deal first reported the sale.<\/p>\n Zooming Out<\/p>\n The sale comes amid a broader surge of institutional capital targeting IOS. Earlier this year, Starwood and Realterm closed a record $672 million IOS loan<\/a>.<\/p>\n Investors favor the asset class for its low maintenance costs and limited capital needs. Demand also remains steady from logistics, construction and last-mile delivery operators. Many of these users have been priced out of more expensive warehouse space.<\/p>\n Schmidt said the deal reflects strong demand for scarce, well-located IOS in the region. That scarcity is especially acute in New York City. Zoning restrictions and competition from residential and last-mile warehouse development have reduced the supply of large outdoor storage sites.<\/p>\n Why It Matters<\/p>\n The deal shows that institutional buyers will pay a premium for large IOS sites with strong infrastructure. Rail and dock access are particularly difficult to replicate elsewhere in the city.<\/p>\n