3.10.22 – Rendering for Sunset Industrial Park last-mile warehouse features maritime transport

An article about last-mile warehouses reported by BisNow on 3.10.22 included the below rendering of the planned Sunset Industrial Park distribution center. The rendering is attributed to “Bridge Industrial and DH Property Holdings.” As you can see, the rendering prominently features barges loaded with shipping containers.

22-3.10 - A rendering of Sunset Industrial Park, a multi-story logistics facility planned in Brooklyn.

The story also included this reporting about the project:

Dov Hertz, whose DH Property Holdings is behind some of the most ambitious industrial projects in the city, said his company is expanding into other markets because New York remains such a challenging environment.

“It is not that we’re not looking for deals in New York, it’s just hard to find appropriate deals, deals that work,” he said, noting that his most recent purchases were in Philadelphia and Boston.

“There’s only a limited amount of industrial space,” Hertz added. “We’re looking at the West Coast, LA, San Francisco Bay Area market. We only focus on urban core infill products. So we’re only looking to go to the major cities, which by their very nature were constrained. So it was sort of always looking for the needle in the haystack.”

Hertz, along with Bridge Development Partners and Banner Oak Capital Partners, is planning a 1.3M SF, multi-story distribution hub at 75-81 20th St. in Sunset Park. He said the facility, which scored $442M in construction financing from JPMorgan Chase last year, is receiving serious tenant interest, though he declined to give specifics.

Last year, Amazon reportedly locked down more than 300K SF at Hertz and Goldman Sachs’ 640 Columbia St. multi-story facility in Red Hook, and Hertz said the e-commerce giant’s interest as a tenant is still enormous — even with its plans to own its own industrial real estate in the future.

“I think Amazon might be a buyer in New York, but I don’t see them being able to move at the pace to compete with a New York developer,” he said. “[And] it’s not a one-horse town — there are other tenants in the market.”

A New York Yimby story from September, 2020 showed a different rendering of the project, which, among other differences, did not prominently feature maritime transport.

— Posted by JVS on 3.17.22, backdated to 3.10.22


11.30.21 – “Dov Hertz lands $442M loan for Sunset Park warehouse project”

As reported by The Real Deal:

JPMorgan provided the developer’s DH Property Holdings with nearly $442 million in financing for its planned 1.3 million-square-foot Brooklyn distribution hub, sources familiar with the transaction told The Real Deal.

Read the full post here (subscription required).

— Posted by JVS on 12.12.21, backdated to 11.30.21

3.28.21 – “New Sunset Park and Red Hook Warehouses Mean More Death from Trucks: Locals”

As reported by Streesblog:

A notoriously treacherous roadway in Sunset Park will get even worse, locals warn, thanks to an influx of trucks coming soon as part of the county’s largest distribution center slated for the neighborhood — one of more than a half-dozen trucking centers that are expected soon.

Developers Bridge Development Partners and DH Property Holdings are planning to erect the massive distribution facility on Third Avenue between 19th and 21st Streets some time this year. The four-story facility inside Sunset Industrial Park, detailed in The Brooklyn Paper, will occupy more than 22 football fields’ worth of space…

“We’ve been talking about Third Avenue and deaths there forever as a neighborhood. Black and Brown people are dying on Third Avenue,” said Sunset Park resident and transit advocate Jorge Muñiz-Reyes. “The only solution has been a few more lights and lowered speed limit, but it’s still dangerous. It’s a major disaster waiting to happen unless the city intervenes.”…

Fears of what even more big rigs could mean for both neighborhoods already plagued with the pollution and traffic crashes caused by them has been an ongoing conversation for years. And since 2018, Sunset Parkers have been demanding the city study truck traffic patterns in the district and the effects of what more could bring, but the city has remained relatively silent.

“The community board has been requesting a trucking study from DOT for a while, there’s been no movement on it,” said local activist Whitney Hu. “The city itself has been fairly quiet on distribution centers popping up. It brings a lot of concerns to the community — street safety itself is extremely worrisome, we know more trucks and more cars without any proper studies is just exacerbating a lot of traffic issues already seen in Sunset Park.”

The city has been largely silent because the proposed buildings don’t require a zoning change and therefore do not get the scrutiny, the community engagement or the environmental impact study required under the city’s Uniform Land Use Review Procedure.

“(The) distribution centers proposed in the community are as-of-right developments, so they don’t require special permits. DOT’s mission is to keep people, goods, and traffic moving safely, and we’re well aware of the e-commerce boom’s impact on that mission,” said a DOT spokesperson…

DOT didn’t respond directly to questions about the study locals have been asking for, but said the agency will be “releasing new initiatives on truck management soon,” and instead touted the Commercial Cargo Bike program it launched back in 2019 that’s so far only in Manhattan. A spokeswoman also said DOT has been providing “periodic updates to CB7 over the last few years” about the 20th Street study…

“We haven’t had any real conversations or coordination with the city on any of this, or any of the actors that are supposedly coming into the district,” said César Zuñiga, who is also running for the council seat being vacated by the term-limited Carlos Menchaca.

The incoming chair of that committee, which is expected to meet for the first time in April, says it will focus on the increased challenges expected as a result of the distribution centers, like traffic and poor air quality, especially since Sunset Park and Red Hook have some of the highest rates of asthma in the city.

“We’ll be tackling the larger impacts of these last mile trucking facilities, impacts on the community and neighborhood as it relates to infrastructure, transportation, and pedestrian and bicycle safety, and again as it relates to air quality,” said Katherine Walsh, who also represents both neighborhoods as the county committee chair for Assembly District 51.

And one City Council candidate for District 38, which includes both Red Hook and Sunset Park, said neither community has been properly informed about what’s coming — a fault, he says, of the land-use process that allows the developers to build the distribution centers without having to go through ULURP.

“This community has not been engaged adequately by the developers. Few people know that’s coming or realize the impact traffic, congestion, air quality, and bike and pedestrian safety. There are a number of concerns that I think need to be addressed,” said Rodrigo Camarena. “But the city also holds responsibility in how it will regulate these massive distribution centers. It’s a big structural challenge that these developers can just transition warehouses into distribution centers as-of-right without going through the ULURP process.”

Read the full story here.

— Posted by JVS on 3.29.21, backdated to 3.28.21

8.7.20 – Filing for 175,308 sf building on Sunset Industrial Park property

In a DOB filing dated 7.24.20, developer Dov Hertz applied for a permit to construct a 175,308 square foot building on the Sunset Industrial Park property he co-owns (the address of the property is listed as 75 20th St., Block 635, Lot 13). The filing describes the building as a “new two (2) story commercial use building.”

You can see the filing here, or view it on the DOB’s website here.

I saw a news item about this filing in The Real Deal, which reported it as having been filed in June (I’m not sure why).

I’m also not sure what the relationship is between this building and the multi-story, 1.3 million square foot distribution center planned for the site, which developers Bridge Development Partners and DH Property Holdings have described as “the largest of its kind in the United States.” However, I feel like it’s safe to assume that there is a direct relationship between the two projects.

— Posted by JVS on 8.7.20

5.14.20 – Sunset Industrial Park developer says the project is on schedule, despite pandemic

The below excerpts are from an interview with Jeff Milanaik of Bridge Development Partners. The company plans to construct a distribution center on the Sunset Industrial Park site. This interview was conducted by Commercial Property Executive.

Bridge Development Partners operates in core markets such as New York/New Jersey, California, Washington, Illinois and Florida. How has the coronavirus outbreak impacted the industrial sectors in these core U.S. markets?

I’m extremely bullish on industrial coming out of this crisis stronger than ever. America was shocked to learn how vulnerable our population and our supply chains are. We’ve never heard the supply chain mentioned as much on national news as we have during this pandemic. I anticipate a paradigm shift in how the supply change operates. Ultimately, I believe we need more onshoring of goods and increased inventory of supplies on hand here in the U.S. That inherently bodes well for warehousing…

Bridge Development Partners is responsible for the 18-acre Sunset Industrial Park project in Brooklyn. New York is one of the epicenters of the outbreak and most construction sites have been shut down. How is this warehouse project being affected by the pandemic? How are you coping with the challenges?

Milanaik: Bridge found ourselves in a unique position. Our business model consists of developing on a speculative basis, holding some properties, while also looking for opportunities to sell to institutions. When evaluating our position at the beginning of the crisis, we found ourselves with properties under contract to be sold and very little exposure to development risk.

It wasn’t unexpected that our Sunset Park project would be shut down by Gov. Andrew Cuomo’s executive order. Fortunately, New York City has a waiver process in place where we are able to keep certain activities underway. Because of the complexity of this project, we are now having conversations with existing tenants whose leases are going to be expiring soon, to make sure everything is resolved before demolition and construction can begin. We were also working very intently on the overall design, making adjustments for current tenants that have decided to stay, etc. We’re finalizing those plans now and soon we’ll be applying for building permits, so the process is actually still lining up with the schedule we had put together…

The need for industrial space was already underscored by e-commerce growth. The coronavirus outbreak prompted nationwide lockdowns, further encouraging online shopping and increasing the demand for warehouses. How do you see this trend continuing after the pandemic?

Milanaik: E-commerce growth will double sooner than anyone anticipated. People that have never shopped online before are doing it now—they are becoming more educated out of necessity. Growth is also being accelerated for those who were already using it. It’s opening up this whole new customer base and there’s no reason for them to stop using it when the pandemic is over. That’s not to say that retail is dead—it isn’t. People are social animals and they’ll still need that interaction of physically shopping for goods, so retail stores that specialize in experiential shopping will survive. But online shopping is being demystified for many consumers, and it will continue to grow faster than ever.

Read the full interview here.

— Posted by JVS on 5.17.20, backdated to 5.14.20

9.27.19 – Sunset Industrial Park developer suggests primary market is “high-earning millennials” in Williamsburg and Long Island City

On 9.27.19, State Broadcast News (SBN) interviewed Jeff Milanaik of Bridge Development Partners about the company’s distribution center project planned for Sunset Industrial Park. Mr. Milanaik is listed as a “Partner, Northeast Region” for Bridge.  

According to SBN, the interview took place after Mr. Milanaik had spoken at the NAIOP I.CON East conference in Jersey City. NAIOP describes itself as “one of North America’s largest, most prestigious and valuable commercial real estate organizations.” 

An audio recording of the interview was posted on the SBN website. (I received a Google Alert for the interview because I get alerts for stories mentioning the phrase “Sunset Industrial Park.”)  

The interview is available here for download on the SBN website, and also available here for direct download. The discussion with Mr. Milanaik starts at about the 33:25 mark.

I typed a transcript of the conversation which can be found below. Some highlights follow (direct quotations from Mr. Milanaik and the host are in italics):

Mr. Milanaik suggests that the project’s primary target markets are in Williamsburg and Long Island City: “In discussions with the retailers, they showed me a map, actually, is what happened, of the tri-state area, and it was like a heat map, and it showed five areas that were red. Two I immediately recognized on the Jersey Side as Hoboken and Jersey City. One was midtown Manhattan, which I thought about, but then realized that people get their goods shipped to the office. The other two were way over on the other side of New York: Williamsburg, Brooklyn and Long Island City. And I said, OK, and they’re target markets because they’re high-earning millennials, pure and simple. We need to get to them, last-mile, just-in-time. That then began the search of, well, what’s the most efficient way to get there? And if you’ve driven across Manhattan, you’ve realized that it’s not ever really a good idea to try to do. So while I could service out of my existing distribution centers – Hoboken, Jersey City, arguably mid-town – you can’t effectively get to Williamsburg and Long Island City. And the population numbers, I don’t have at my fingertips, but they’re very high concentrations in millions of people.”

How goods will arrive at the distribution center and be shipped out of it: “And that’s kind of the four story concept we came up with, with ramping to each of the floors, because I believe that the inbound freight side will come out of the port of New York-New Jersey, meaning Elizabeth, it will come up Route 278, large trucks, drop the goods off at night, they’ll get sorted, whatever, and then early morning, there will be Sprinter vans, Ubers – because last mile in the boroughs, if you’ve driven any of the borough streets, are extremely narrow. You’re not going to get trucks through them of any degree – and they’re going to be small delivery vans making the touch, like a FedEx van, even, as an example.” 

The site’s workforce: “And while I love building buildings and setting distribution operations up, they can’t do it unless you have a workforce. So part of our investigations any time we do this is looking at available workforce, how do they get there. And we’re fortunate with the amount of housing in the area that does exist, and the mass transit lines, the many subways, we have an abundance of workforce.”

Potential clients are e-commerce, but also smaller, local companies: “Well, there’s a lot of discussion on e-commerce. This entire conference had a lot of conversation on e-commerce. We’ve done quite a bit of that business ourselves, too, in New Jersey over the past few years. I do believe, I guess a good example would be one of the customers we just signed up and we’re doing a building for, I approached them and said, look, we have this property, and we’re in the design stages of this, we’d like to get your input, figure out, are we thinking right, what would you do differently, so we have an opportunity to do it right, and you can only have one shot at doing this, so why not inquire. So we had conversations, and the very first thing they said was, we have to be there. It wasn’t like a maybe or we’re thinking about it – we absolutely have to be there. We don’t know how we’re going to service that yet. That may be generation ten of our material handling system. Now, I can’t imagine, but ten is much further than generation one. And the comment was, probably like we do it overseas. So they’re already starting to think in that direction. But then they said, but if you’re three years out, I’ve got too much to do right now, so we’ll talk to you shortly, because there’s such an appetite, as you heard,  for space to service that.” 

“So yes, I do believe there’s going to be strong interest. We’ve had some initial interest already from third-party logistics that are serving e-commerce companies that we know who they are and what they’re doing. We’re just not really quite ready. But my philosophy has always been, to be successful in the industrial business regardless, keep the building generic enough, keep it so it’s divisible for the right sizes. As I said, these buildings will divide down to 30, 40 thousand square foot users. That means, yes I can handle large e-commerce users. But it also means I can accommodate the small, neighborhood user that may be restaurant equipment or food service or somewhere like that, serving the greater population. So our concept is to keep it generic enough to accept any and all users.”

Project time frame: “So, right now we’re kind of stabilizing the site. As I mentioned to you, we’ve got to relocate a existing person who actually owns a building on the site. We’ve reached (an) agreement with how we’re going to do that. Beginning in January of ‘20, we’re going to finalize, start working hard on the design. It takes about a year or so, 14 months to get building permits out of New York City. So we’re anticipating breaking ground hopefully in the first quarter of ‘21.” 

“Host: Great. And in operation by when, do you think?”

“JM: I think probably 24, 36 months from now, if I were to guess.”

Milanaik suggests that a positive aspect of the project is that it will not have to go through the ULURP process: “Now Brooklyn and New York, it is, even though I’ve been developing in New Jersey and around the country since 1987, I know what I don’t know, and I knew I didn’t know how to navigate the New York building process, approval process, which is why we partnered up with THPH. The unique thing there is, you have to buy property based on FAR, which is an unusual concept, floor-area ratio. So, if you have a property of 20,000 square feet, as an example, you can build 40,000 square feet on it as-of-right. And it just multiplies from there. The other nice part is that as long as you can conform with the building ordinances and codes, your building is technically as-of-right as well, so all you do is pull building permits. So, it’s challenging on one hand, but you avoid the whole site plan process on the other.” 

On the overall market for distribution centers and the availability of industrial land: 

“Host: And as you look at the market over the next 12-18 months, are you seeing pretty strong demand for more development? Are you seeing things start to level off? Where are things going?”

“JM: No, it’s mind-boggling to me, the demand. Well, let me rephrase that. The question I’ll pose is, is the demand stronger, or is the supply that much shorter, which increases the overall demand? And the reason I say that, having been developing in Jersey over the years, many years ago, a former governor put together a plan called, we in the development side affectionately referred to it as “The Red Map.” I don’t know if you may remember that. And it was the state of New Jersey, and it was, targeted areas that were green where he would encourage growth, and there were big swaths of red that were throughout the plain, like the Highlands, where you couldn’t develop. And I was president of New Jersey NAIOP during that period. And all the conversations with our engineers who were analyzing the impact, they said, do you realize you’re going to be out of industrial space in New Jersey in ten years? And I’m like, scoffed at it, because I’d been building on green fields forever. They couldn’t have been more realistic. So the stuff that we’re doing over there with reclaiming old industrial sites is because there’s no supply. If you take that onto the borough side, it’s even a tighter supply.” 

The full transcript follows: Continue reading “9.27.19 – Sunset Industrial Park developer suggests primary market is “high-earning millennials” in Williamsburg and Long Island City”

5.1.19 – Report on “urban logistics” mentions Sunset Industrial Park

As reported by PlaceTech on 5.1.19:

Along with the usual business mail and packages, a city-centre office can now expect a steady delivery of goods as employees take advantage of their workplace as a drop-off location for online shopping. What sets the office apart from home deliveries is the additional resource needed to deliver to a busy, congested environment far from a handy warehouse.

For cities everywhere, it’s just one example of how urban logistics is becoming more complex, putting pressure on the existing road network and demanding more space from urban real estate. In his 2016 book The Geography of Transport Systems, Jean-Paul Rodrigue defines urban logistics as “the means over which freight distribution can take place in urban areas as well as the strategies that can improve its overall efficiency while mitigating congestion and environmental externalities”. Essentially, this means locating warehouse facilities close enough to their final delivery points while avoiding as much traffic congestion as possible.

So how big an issue is this for the real estate sector? With the rise of e-commerce fulfilment, the emergence of mega-regions and the continued focus on the environmental concerns of such activities, the real estate needs of tenants occupying urban warehouse space is expected to change in the future. Indeed, the EU’s 2011 transport White Paper established a goal stating the need for a zero-emissions strategy for urban logistics by 2030. Should this emerge into policy, it would suggest that more delivery facilities are required closer to population centres.

Here’s seven examples of warehouse innovations and policies which provide a glimpse into the future of urban logistics…

Sunset Industrial Park, Brooklyn, New York, US

Plans are in place to demolish the site’s existing brick industrial buildings and replace them with a 120,000 sq m, four- floor warehouse, the largest multi-storey warehouse in the US. The Park is located close to the Verrazzano-Narrows Bridge, and within a one-hour drive of 13 million consumers. Its design allows trucks to access all four floors, with more than 11m clearance height on the first two floors and 8.5m clearance on the top two, comparable with other single-storey units.

Read the full story here.

— Posted by JVS on 5.5.19, backdated to 5.1.19

4.21.19 – Updated: Suggested waterfront questions to investigate

Below is a list of suggested waterfront matters for CB7 and/or other community actors to investigate:

+ + + + + + + + + +

Economic impact of Industry City – The community needs more detailed information from IC regarding its economic impact, economic model, and vision for the property.

Suggested actions for CB7 to take: 

(1) Ask all of the IC businesses who signed onto the recent letter to Councilman Menchaca and CB7, along with the businesses highlighted in IC’s 2019 update, to provide details on their workforce. The businesses need not be identified publicly. However, they should be asked to provide information on how many local employees they have hired, what the salaries are for those employees, and whether benefits are provided as part of the job. Continue reading “4.21.19 – Updated: Suggested waterfront questions to investigate”

3.3.19 – Suggested questions to expand the Sunset Park waterfront conversation


  1. To expand public understanding of the redevelopment activities already underway at private and city-managed properties.
  2. To promote a more robust ongoing, public dialogue with the city and private developers concerning potential future uses for waterfront properties.


  1. Existing planning documents to reference include: New York Works, Engines of Opportunity, the 197-A plan, and the Sunset Park Waterfront Vision Plan. Major projects also have websites, such as the BAT website and the Made in NY Campus site.
  2. Below is a list of topics and questions to consider. Addressing them would best be done via ongoing, public meetings with city staffers, and direct public meetings with private developers.
  3. To be sure, a good deal of related information is publicly available, and community engagement has taken place in a variety of ways over the years. (Because a subject is new to me doesn’t mean it’s new to others!)
  4. That said, I believe that many of the below matters aren’t clearly understood by members of the public. I also think we would all benefit from a more robust and ongoing dialogue with city officials – and private developers, if possible – concerning these matters.
  5. An EDC-community task force was assembled for the South Brooklyn Marine Terminal project. Do other such task forces exist? If not, could they be formed for BAT, the Made in NY Campus, and other matters?
  6. Another suggested tactic: a set of two hour meetings with EDC and De Blasio administration staffers could be scheduled for upcoming Saturdays. They could be held in the CB7 office, and would be recorded and posted online. The meetings would aim to address specific questions regarding waterfront projects while also permitting a moderated public forum for members of the public to ask questions about, and advocate for, specific visions of waterfront redevelopment. Among the topics we could discuss:

Continue reading “3.3.19 – Suggested questions to expand the Sunset Park waterfront conversation”

3.1.19 – “The first to the last mile”

As reported by The Real Deal:

A small but growing number of real estate players — many of them flying under the radar — see a city of millions of e-commerce customers who increasingly expect products to arrive they same day they hit send…

Other investors in this nascent market include Dov Hertz, once luxury high-rise developer Gary Barnett’s right-hand man, whose accomplishments include piecing together most of the parcels for One57 — the pioneering condo tower that established West 57th Street as “Billionaires’ Row.” Another firstcomer is Marvin Schein, who’s looking to rent four floors at his Liberty View Industrial Plaza in Sunset Park to the next wave of online merchants looking for distribution space.

So-called last-mile warehousing space can attract rents exceeding $30 a square foot, according to several investors in the business. That’s akin to what outer-borough office landlords were asking just a few years ago…

Schein’s Salmar Properties bought the 1.1 million-square-foot building for just $10 million in 2011…

Back then, Salmar wanted to make Liberty View a refuge for manufacturers that were being priced out of Manhattan’s Garment District. That plan never came to fruition, though.

“It turned out that garment workers wanted to stay in the city,’’ Schein said. “They felt that if they moved out, they would lose their relationships with the European and American buyers that frequent Manhattan.”

With 12- to 15-foot ceilings in Sunset Park, Schein and other developers couldn’t even begin to compete for manufacturers looking for way stations to deliver goods to stores. Even Amazon — which recently backed out of bringing half of its “HQ2” to Long Island City — has kept its fulfillment centers outside major cities and close to superhighways.

Increasingly, though, the e-commerce giant and its competitors are using smaller facilities like the one at Liberty View to service customers even quicker, Schein said.

“Amazon, Best Buy, Net-a-Porter, all these retailers are looking for industrial space that’s centrally located in the city and has easy access for loading and unloading,” he maintained. “That’s what’s happening throughout the country.”…

Meanwhile, 95 percent of the roughly 2.5 million square feet of industrial space leased in New York in 2018 was for e-commerce and logistics companies, according to JLL. There’s now more than 700,000 feet of new warehouse and other industrial space being built throughout the city and another 4.8 million feet proposed, JLL’s data shows…

Many e-commerce tenants may end up flocking to the city’s older stock of industrial space to save money, similar to what some new office buildings in the outer boroughs have seen, the landlord noted…

For Hertz’s development firm, DH Property Holdings, last-mile deliveries are too exacting a need to service from existing warehouses.

So he and his partners are planning to build a new four-story distribution center at the 18-acre Sunset Industrial Park. Once the 1.4 million-square-foot facility is completed, delivery trucks will be able to drive up on ramps and load and unload on each floor.

Hertz and a handful of other investors, including Chicago-based Bridge Development Partners, Dallas-based Banner Oak Capital and the Texas teachers’ pension fund, paid $255 million for the site in January. And to make way for the  distribution center, Hertz said, they will tear down 20 “Class C industrial buildings” totaling about 400,000 square feet…

“In doing my homework, it occurred to me that as e-commerce picked up, distribution facilities were going to be the new retail,” the developer noted. So he then spent several months touring various warehouses in the five boroughs.

Read the full story here.

— Posted by JVS on 2.8.20, backdated to 3.1.19