A 53-hectare industrial outdoor storage (IOS) property on Staten Island has changed hands for US$167 million. Real estate investment firm Jadian Capital acquired the site at 1900 and 1800 South Avenue, located on the west coast of the island, from Dov Hertz's Kadima Industrial Partners. This information comes from brokerage firm Cushman & Wakefield. The Real Deal first reported the sale.
The site is fully leased to logistics giant Amazon, which operates a car park and trailer yard there for its extensive delivery operations. Cushman & Wakefield pointed out that this type of asset class, particularly with a long-term lease and a creditworthy tenant like Amazon, is highly sought after. The industrial outdoor storage (IOS) market has developed into a key component of logistics infrastructure in recent years.
Strategic Importance and Growth of the IOS Segment
Industrial outdoor storage is essential for the modern supply chain, as it provides space for storing goods, vehicles, and containers that do not require enclosed warehouses. Demand for such spaces has risen sharply due to the e-commerce boom and the associated need for efficient logistics operations. Jadian Capital's acquisition underscores institutional investors' confidence in this specific niche of the industrial market.
Josh Kaufman of Cushman & Wakefield commented on the demand: "We have seen incredible demand for industrial outdoor storage properties. This is an asset class that is here to stay due to land scarcity and its critical nature for the supply chain." This statement highlights the long-term perspective investors see in this segment.
Significance for the Region and Further Investments
For Staten Island, this transaction confirms the location as an important logistics hub within the New York metropolitan area. The availability of large, developable sites is increasingly limited in densely populated areas, which further enhances the attractiveness of existing and well-located IOS properties. Staten Island's west coast offers strategic connections to important transport routes.
Dov Hertz acquired the site in 2021 for US$102 million, thereby realising significant value appreciation within three years. This underscores the potential for value growth in the industrial outdoor storage segment, especially when strategically located and secured with long-term leases. The market remains dynamic, driven by structural changes in trade and logistics.
