Terreno Realty has acquired a waterfront warehouse in Red Hook, Brooklyn. The company announced on Monday the purchase of the 28,000 square-foot industrial property at 659 Court Street for US$26.3 million from California-based LBA Properties. LBA Properties had acquired the property less than 18 months ago for US$7 million, according to land records, representing a significant profit.
The building is located directly on the East River and offers space for 70 cars, as well as two loading docks, as stated by the buyers. The warehouse is also leased to a provider of maritime goods and services. Who was involved in brokering the deal remains unclear. LBA did not immediately respond to a request for comment, while Terreno also did not provide an immediate response to a request for additional comments.
Price Development and Market Context
The property has a buildable area of 145,800 square feet, including additional air rights, and its price has fluctuated significantly over the years. Buckeye Partners, which sold the property to LBA in March 2025, had itself acquired it in 2013 for US$15.5 million. However, in late 2019, Buckeye Partners paid a property transfer tax of US$92.1 million, as shown in land records.
This transaction follows robust leasing fundamentals reported in the industrial sector in the second quarter of 2026. According to a report, CBRE recorded an 11 percent year-on-year increase in leasing activity to 268.7 million square feet across the entire USA. At the same time, vacancy rates decreased to 6.5 percent, underscoring strong demand in this sector.
Significance of the Location
The Red Hook location, known for its strategic waterfront position and proximity to key transport routes in Brooklyn, remains an attractive market for industrial and logistics properties. Developments in this area are closely watched by investors, as such properties are increasingly considered essential for urban supply logistics.
