Prologis is increasing its real estate portfolio in the city with a massive purchase in Brooklyn.
The industrial giant is buying 440 Kingsland Ave. in Greenpoint from ExxonMobil for roughly $122 million, according to sources familiar with the deal. The sprawling site spans 10 acres and is located right by Newtown Creek on the Greenpoint waterfront.
Prologis is still determining what the best use of the site would be, but the company may use it as a logistics facility or for vehicle storage. The property could also help support the city’s Blue Highways initiative, which aims to use local waterways to help improve the transportation and delivery of goods throughout the five boroughs. New York City Economic Development Corp. President and CEO Andrew Kimball said at a recent Crain’s event that large industrial companies like Prologis and UPS were very interested in the initiative.
Jeremiah Kane, senior vice president of value added investments at Prologis, called the site “a strategic buy” for the company.
“As we evaluate use options for the site, whether it is a modern logistics facility, vehicle storage or enhancing freight transportation by leveraging the city’s Blue Highways initiative, we are well positioned to meet the increased demand for high quality, well-located logistics real estate,” he said.
TerraCRG’s Dan Marks, Daniel Lebor, and Ofer Cohen brokered the deal for ExxonMobil. Marks said in a statement that the team was “thrilled to have played a role in facilitating this complex transaction.”
A representative for ExxonMobil declined to comment on the deal.
Northeast Greenpoint was a popular place for various petroleum companies dating back to the 1830s, including ExxonMobil, which previously had a refinery and bulk storage terminal in the neighborhood, according to the state’s Department of Environmental Conservation. The area suffered a major oil spill in 1978, and cleanup efforts continue to this day under the state’s Greenpoint Petroleum Remediation Project.
Prologis has made multiple purchases in New York in recent years, including a radio station site at 48-00 Grand Ave. in Maspeth that it bought in 2020 for $51 million. The firm also struck a blockbuster deal last year to buy almost 14 million square feet of warehouse and industrial properties across the country from Blackstone for $3.1 billion.
Industrial real estate held up very well during the pandemic in the city, where demand for it has long outstripped supply. The vacancy rate in the outer boroughs was 5.1% for the third quarter of 2024, the first time it had risen above 5% since 2020, according to data from Cushman & Wakefield.
