NEW YORK, NY – March 18, 2021 – In 2020, Staten Island was at the top of mind for industrial developers, according to Ariel Property Advisors’ first-ever Staten Island Year-End Investment Sales Report. As consumer online retail purchases continue to rise, demand for logistics centers in and around densely populated urban markets has exploded—and Staten Island has the most undeveloped land in New York City zoned for the development and construction of warehouse and industrial space. Overall, the borough saw $322 million in investment sales dollar volume, approximately the same figure as 2019, a remarkable feat during the Covid-19 pandemic, while transactions fell 39 percent to 45 total properties and building volume fell 44 percent to 60 buildings.
2020 saw three major sales of industrial development sites: 4101 Arthur Kill Rd (formerly the Kinder Morgan site), 1900 South Ave (formerly home to Vanbro) and 1 Nassau Place. These transactions totaled more than 288 acres of land and were purchased for a combined $181 million, accounting for 56 percent of the total dollar volume across the borough.
“Industrial continues to be an incredibly ascendant asset class across the boroughs—and Staten Island is no exception,” said John Higgins, Director, Investment Sales, Ariel Property Advisors. “Staten Island is well-placed to ship to New York City and New Jersey so we expect to see ongoing industrial property investment there.”
Outside of industrial development trades, there were also significant trades within the multifamily and commercial asset classes. The sale of 100 Belmont Place, two six-story elevator buildings in St. George, for $11.9 million, accounted for 70 percent of total dollars in the multifamily asset class. Within the commercial asset class, a private investor purchased the Shops at Richmond, home to Dick’s Sporting Goods, for $31.5 million. This center is adjacent to the Staten Island Mall where new owner General Growth Properties recently added 500,000 square feet to the existing structure.
“The low transaction and property volume can be directly attributed to the slowdown brought on by the pandemic,” said Sean Kelly, Esq., Senior Director, Investment Sales, Ariel Property Advisors. “As the vaccination rollout progresses, the market is expected to stabilize and demand to increase. Staten Island will remain an attractive market to investors seeking strong returns and stability.”
The recovery of the New York real estate market continues to depend on how quickly the threat of Covid-19 is eliminated. As people return to reopened businesses, schools and cultural institutions, the residential and retail markets should benefit from a significant recovery. Lower vacancy rates, continued low interest rates and additional stimulus capital will provide the momentum needed for a recovery. Further, transaction volume may pick up as owners and lenders dispose of underperforming or distressed assets.
You can find the full report here: arielpa.nyc/investor-relations/research-reports.
