New York Industrial Project Lands $163M

Brewster Distribution Center. Image courtesy of Cushman & Wakefield

Lincoln Equities Group and H.I.G. Realty Partners have received $163.3 million in acquisition and construction financing from Heitman for their Brewster Distribution Center project in Putnam County, N.Y. Cushman & Wakefield was the ownership’s exclusive advisor in procuring the funding.

The Brewster Distribution Center is in Brewster, N.Y., about 5 miles north of Westchester County and only half a mile from I-84 and I-684. The 328-acre property reportedly has a fully approved site plan for the development of two Class A industrial facilities totaling 921,000 square feet. Construction is expected to be completed in the second quarter of 2023.

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The site is east of the Hudson River, roughly 60 miles north-northeast of New York City. Cushman & Wakefield noted that tenants at this location can reach more than 22 million consumers within a two-hour drive.

Joel Bergstein, president of Lincoln Equities Group, said in a prepared statement that Brewster Distribution Center’s strategic location would offer users immediate access to each of the New York City, Westchester and Connecticut markets.

A Cushman & Wakefield Equity, Debt & Structured Finance team of John Alascio, Chuck Kohaut, TJ Sullivan and Meredith Donovan represented the borrower.

Alascio noted that the debt capital markets continue to show strong interest in industrial projects for top-tier sponsors.

Quiet in the country

Although northern Westchester County is the county’s only submarket to see its availability rate increase quarter-over-quarter, that rate is modest and stable at just below 6 percent, according to a third-quarter report from NYC-area commercial brokerage RM Friedland.

Not quite 400,000 square feet currently is available in the submarket (against a county-wide inventory of about 37.5 million square feet), noted RM Friedland, so the addition of Brewster Distribution Center’s 900,000-plus square feet just north of the county line should have a substantial effect on the market.

Last February, H.I.G. was the lending intermediary for Pegasus Park, a five-building redevelopment project in Dallas, arranging a $97.6 million variable-rate loan from Axos Bank. The borrower was a joint venture of J. Small Investments and local entrepreneur Lyda Hill.