Directly across Second Avenue from Industry City in Sunset Park, three-story concrete industrial buildings with off-street truck bays have become the backbone of Brooklyn's e-commerce and commissary economy. Publicly traded industrial REIT Terreno Realty paid $36.5 million ($250 a square foot) for the 146,000-square-foot complex at 4301 Second Avenue, handing the seller a 52.1 percent gain over its 2017 purchase. When the deed closed on January 8, 2026, Terreno Realty Corporation had officially taken down 4301 Second Avenue from Salmar Properties for $36.5 million, with Cushman & Wakefield brokering the trade.

Look past the sticker price and the trade tells a clear story about replacement cost in Brooklyn. At $250 a square foot across 146,000 square feet, the closing price marks a 52.1 percent step-up over the $24 million basis recorded in September 2017. In today's five-borough construction market, buying modern or well-maintained brick at $250 a square foot still beats the time and cost of digging a foundation from scratch. Even better for the buyers, the in-place rent roll hands them a verified 6.00 percent going-in cap rate from day one.

Northwestern Mutual Locks In 60% Fixed-Rate Industrial Debt

The real tell in any Brooklyn closing sits on the debt side of the ledger. To fund the purchase, Terreno Realty Corporation locked in a $21.9 million senior industrial mortgage from Northwestern Mutual Real Estate at 60 percent loan-to-value.

That loan commitment meant the buyers only needed to write a $14.6 million equity check to control a 3-story, 1954-vintage Sunset Park asset. Credit committees aren't stretching to 75 percent leverage anymore, but when a sponsor brings $14.6 million of real cash equity and a basis of $250 a square foot, lenders like Northwestern Mutual Real Estate are wide open for business.

From Our Desk

When we look at 4301 Second Avenue on our placement desk at Light Tower Group, the lesson for New York sponsors comes down to the marriage of entry basis and lender selection. Terreno Realty Corporation didn't try to fight the tape—they bought Sunset Park footage at $250 a square foot and paired it with the exact lender bucket built for this business plan. When a blue-chip industrial REIT like Terreno pairs with Northwestern Mutual at $250 a foot in Sunset Park, it confirms that infill M3-1 Brooklyn industrial remains one of the tightest submarkets on the East Coast.