Otto Environmental Leases 60,000 SF of Brooklyn Industrial Property
Turnbridge Equities and Dune achieved full occupancy.
Otto Environmental Systems has leased 60,000 square feet of property in Brooklyn, New York.
The announcement came from Turnbridge Equities and Dune Real Estate Partners, which both purchased the full space, amounting to 172,000 square feet, at 807 Bank Street in December 2021. It is now a Class A warehouse, which replaced what the two real estate investment firms described as “two existing, mid-20th century vintage warehouses.”
Some features of the Canarsie submarket property include a rooftop solar carport system and rooftop parking. According to Turnbridge and Dune, the space represents just two of the LEED Platinum-designated distribution warehouses on the East Coast. The location is within a 30-minute drive of JFK Airport and the New York metropolitan area, with access to seven million people.
In May 2024, the 172,000 SF property was 65 percent leased to two tenants. But just after two months of delivery, the project reached full occupancy.
“We saw incredible tenant demand, which really validated our strategy of designing a best-in-class, LEED Platinum, Class A industrial building in an established industrial node of Brooklyn,” Ryan Nelson, managing principal for Turnbridge, said in a statement.
“We think the quality of tenancy here speaks to the strength of not only Brooklyn as a home to industrial users, but also to the continued strength of New York City industrial market as a whole.”
This year, NYC has seen solid industrial fundamentals. Asking rent surged by 20 percent to $36.58 per SF in the first quarter compared with the previous three months for Class A properties, according to a CBRE report. Among all asset types, the median increased 11% to $29.95 per square foot in the first quarter. Leasing was above average at 1.1 million SF.
Meanwhile, the demand wasn’t sky-high, as net absorption was barely positive at 81,000 SF. The vacancy rate was 4.8 percent.
Rico Murtha, Helen Paul, Amanda Gerhart, and Joe Hentze of Cushman & Wakefield, represented both Turnbridge and Dune on their Canarsie lease deal.