Joint venture buys industrial space in Brooklyn

Condo conversions drive up demand for warehouses

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Manhattan, N.Y.-based Hudson Realty Capital LLC has partnered with PDS Holdings of Brooklyn, N.Y., to acquire a 224,000-square-foot industrial complex in the Sunset Park area of Brooklyn. HRC and PDS acquired the complex, which includes 12 interconnected, multistory buildings along 18th and 19th streets, for approximately $14.3 million. "The conversion of numerous industrial buildings to residential condominiums throughout the boroughs has resulted in the displacement of many industrial tenants (including commercial loft tenants) and thus created stronger demand for existing, well-located industrial space," said Spencer Garfield, managing director for HRC. Zoned for M3-1, the site was 88 percent leased at the time of sale to 18 tenants, primarily for light manufacturing and distribution uses. "During the next 18 months, we plan to invest approximately $370,000 in capital improvements to the property," Garfield said. "Within that timeframe, PDS expects to lease up the remaining spa...