Industrial has been considered real estate’s hottest asset class of the last two years as retailers of all types rushed to lease buildings to meet shoppers’ insatiable online demands. But not all buildings are seeing rents and values rise, and some recent investors may be in for some disappointments.
Dov Hertz, whose DH Property Holdings is behind some of the most ambitious industrial projects in the city, said his company is expanding into other markets because New York remains such a challenging environment.
“It is not that we’re not looking for deals in New York, it’s just hard to find appropriate deals, deals that work,” he said, noting that his most recent purchases were in Philadelphia and Boston.
“There’s only a limited amount of industrial space,” Hertz added. “We’re looking at the West Coast, LA, San Francisco Bay Area market. We only focus on urban core infill products. So we’re only looking to go to the major cities, which by their very nature were constrained. So it was sort of always looking for the needle in the haystack.”
Hertz, along with Bridge Development Partners and Banner Oak Capital Partners, is planning a 1.3M SF, multi-story distribution hub at 75-81 20th St. in Sunset Park. He said the facility, which scored $442M in construction financing from JPMorgan Chase last year, is receiving serious tenant interest, though he declined to give specifics.
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DH Property Holdings is a leading real estate development, investment and asset management firm focusing on complex industrial distribution warehouses in dense, urban-core areas.
