DH Property Holdings Secures $88 Million Refinancing for Staten Island’s Industrial Gem

In a spectacular move that underscores the resilience and strategic foresight of DH Property Holdings, the company has successfully secured an $88 million refinancing deal for its prized asset at 1900 South Avenue in Staten Island, New York. This significant financial infusion, sourced from Athene, a robust subsidiary under the banner of Apollo Global Management, marks a pivotal moment for the largest privately-owned industrial site within the bustling metropolis of New York City.

Tri-Modal Access: A Game Changer in Urban Logistics

What sets this property apart is not just its impressive scale but its unmatched tri-modal access capabilities. Featuring a unique combination of a railroad track connection, a waterfront steel bulkhead dock, and direct interstate access, the site offers unparalleled logistic advantages. This strategic positioning becomes even more critical in today’s fast-paced market, where the efficiency of transportation and logistics stands as a pillar of successful industrial and commercial operations.

Strategic Acquisition and Visionary Leadership

DH Property Holdings, under the visionary leadership of founder and president Dov Hertz, acquired this industrial powerhouse in December 2020. Since then, the company has not only maintained its stature but has significantly enhanced the site’s value. With industry giants such as City Asphalt and Insurance Auto Auctions currently leasing over 80% of the facility, the property’s operational potential and financial stability have been firmly established.

In reflecting on the recent refinancing achievement, Dov Hertz highlighted the property’s incredible versatility and future potential as key factors that attracted competitive financing options, despite a challenging economic climate. His remarks shed light on the continued momentum observed in the industrial outdoor storage market, demonstrating DH Property Holdings’ acute awareness of market trends and its ability to leverage them for strategic benefit.

Competitive Financing in a Tight Capital Market

The ability of DH Property Holdings to secure such competitive financing speaks volumes about the quality of the asset, the trustworthiness of the holding company, and the expertise of the financial teams involved. The transaction, masterfully arranged by Walker & Dunlop’s seasoned team comprising Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, and Michael Ianno, further emphasizes the collaborative effort and industry expertise that were pivotal in this deal.

Implications for Real Estate Investors

For real estate investors looking towards the future, the success story of 1900 South Avenue serves as a prime example of how strategic asset acquisition, combined with visionary leadership and effective financial negotiation, can yield substantial dividends. This case underlines the importance of flexibility, the potential for adaptive reuse, and the value of tri-modal access in urban industrial properties.

Investors should take note of the burgeoning potential in industrial outdoor storage and logistics real estate, especially in strategically located urban areas. Furthermore, Dov Hertz’s effective maneuver through tight capital availability landscapes offers invaluable lessons in securing financing and negotiating deals that align with long-term vision and market dynamics.

Looking Ahead

With this substantial refinancing, DH Property Holdings is well-positioned to enhance and expand its operations at 1900 South Avenue, further solidifying its role in New York City’s industrial and commercial ecosystem. For real estate investors and industry observers alike, the evolution of this property will undoubtedly provide critical insights into the future of urban industrial real estate investment, development, and finance.