B
ahrain-based Investcorp has made a significant move in the industrial sector by acquiring a five-property, 435,000-square-foot portfolio in Suffolk County, New York for $95.8 million. The portfolio includes four fully occupied buildings in Bay Shore, Ronkonkoma, and Bayport, while one property remains vacant. The seller of the portfolio is a joint venture between Metropolitan Realty Associates and TPG Angelo Gordon. The Cushman & Wakefield team, including Gary Gabriel and Kyle Schmitt, represented the sellers in the transaction.

    Investcorp plans to redevelop the vacant property in Ronkonkoma into an overnight truck and van parking site. The properties in the portfolio range in size from 33,000 to 129,000 square feet, with uses varying from warehousing and manufacturing to cold storage.

    In other news, 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.

    Despite the recent surge in demand for industrial real estate, the market may face challenges due to an influx of new inventory. In the second quarter, asking rents in Long Island's industrial market reached $17.11 per square foot, a 10-year high, according to a Colliers report. However, there was negative net absorption of 369,000 square feet, resulting in an availability rate increase of 90 basis points to 5.9 percent.

    In related news, Brennan Investment Group has agreed to purchase a 17-building industrial portfolio in Lombard, a suburb of Chicago, for $76 million. This move comes amidst a glut of new inventory in the market.

    Finally, Starwood Capital Group and Onyx Capital have paid $146 million for a Long Island industrial portfolio. The portfolio includes six buildings totaling 1.3 million square feet, with uses ranging from warehousing and manufacturing to office space.