NEW YORK CITY—Highlighting the continued need of warehouse space for the retail sector, the UK-based, international clothing company French Connection has renewed its 88,000 square-foot lease at 184-10 and 184-60 Jamaica Ave. in Jamaica Queens. Madison Realty Capital and Artemis Real Estate Partners bought the 613,000 square foot industrial property last year for $78 million.
A source close to the transaction tells GlobeSt.com that the extension of the lease is for three years, with asking rents at $17 to $22 per square foot.
“We continue to see a shortage of industrial space in New York as properties are converted to other uses, and we believe that well-located industrial assets like ours are likely to perform well as a result,” says Josh Zegen, co-founder and managing principal of Madison Realty Capital. “We are currently in negotiations with tenants of all sizes, and demand remains strong.”
Madison Realty Capital and Artemis plan to upgrade the Jamaica Avenue properties, enhancing the building envelope, mechanical infrastructure and elevators.
Originally built in 1923 and 1954, the buildings are four and five stories. They have five freight elevators, two passenger elevators, 12 loading docks and 500 feet of frontage along Jamaica Avenue. The property also has a 30,000 square-foot parking lot with over 100 parking spaces, and is close to the Jamaica Station public transit hub.
The property improvements will help address the increasing demand from industrial and mixed-use, “flex” office and industrial users looking for space within the increasingly limited New York City market. In January 2018, The Wall Street Journal reported that “an insatiable demand for warehouse space is colliding with a chronic land shortage.” The article covered warehouse projects expanding vertically to meet population and demand increases.
In addition to French Connection, the Jamaica Avenue properties include tenants Hanky Panky and Gotham Greens.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
