Investcorp Pays $96M for Long Island Industrial Portfolio

Bahrain-based Investcorp is making a big industrial play on Long Island.

The alternative investment firm purchased a five-property, 435,000-square-foot industrial portfolio in Suffolk County for $95.8 million, the New York Business Journal reported. The portfolio includes two buildings in Bay Shore, two in Ronkonkoma and one in Bayport.

The seller of the portfolio is a joint venture between Metropolitan Realty Associates and TPG Angelo Gordon. Four of the five buildings in the portfolio are fully occupied. Investcorp plans on redeveloping the vacant property at 195 13th Avenue in Ronkonkoma into a site for overnight truck and van parking.

The properties range from 33,000 to 129,000 square feet. Uses vary from warehousing and manufacturing to cold storage.

A Cushman & Wakefield team including Gary Gabriel and Kyle Schmitt represented the sellers in the deal.

Investcorp is wheeling and dealing in the industrial sector. The investment firm recently sold a 17-building industrial portfolio built decades ago in Lombard, a suburb of Chicago; Brennan Investment Group agreed to a $76 million purchase of the Yorkbrook Business Park.

Meanwhile, TPG Angelo Gordon has teamed up with Triten Real Estate Partners to invest $1 billion in outdoor storage over the next five years. Since December 2020, the joint venture has already invested $500 million in industrial outdoor storage.

The industrial market has been a safer bet than other commercial real estate sectors in recent years, but a supply boom of new inventory could threaten demand compared to the early days of the pandemic.

In the second quarter, asking rents in Long Island’s industrial market jumped to $17.11 per square foot, a 10-year high, according to a Colliers report. While leasing volume was close to 1 million square feet, there was 369,000 square feet of negative net absorption. The availability rate increased 90 basis points to 5.9 percent.

— Holden Walter-Warner