Jadian Capital pays $167M for Staten Island IOS site

This week, a yard on Staten Island's west shore sold for $167 million. The 53 acres are industrial outdoor storage, a niche that rarely gets a public price. Jadian Capital bought the property at 1900 and 1800 South Avenue from Dov Hertz's Kadima Industrial Partners. Cushman & Wakefield represented the seller, and Kyle Schmidt, a broker at the firm, called the trade 'one of the market's largest' in a LinkedIn post.

The Real Deal first reported the sale; Commercial Observer confirmed the price. C&W listed six brokers on the assignment. The public record does not identify the buyer's broker or the acquisition financing. It does put a price on the land: $3.15 million an acre.

Dov Hertz's DH Property Holdings assembled the land in two purchases during 2020 and 2021, paying a combined $79 million. It then spent about $10 million on capital improvements. The all-in basis came to roughly $89 million. At the $167 million sale price, the gain is 88 percent. The profit above the improvements is close to $78 million.

The site is fully leased. City Asphalt, which runs a mixing plant there, and IAA, an auction house, occupy the 53 acres. The property has a waterfront dock and rail access. Jadian will keep operating it as an IOS facility, according to The Real Deal.

IOS, in the shorthand of industrial real estate, is land used for trailers, containers, and heavy equipment. There is no warehouse; the location is the asset, and it is hard to replace. The asset class has tended to trade in private, one-off deals, and pricing has been opaque as a result. Owners are mostly private firms, not institutions. Schmidt's own summary points to 'continued user and capital demand for sites offering proximity to infrastructure and consumers.' That proximity is the product.

This week produced two public numbers for IOS. Starwood and Realterm closed a $672 million refinancing, a sector record, as Private Real Estate Daily reported. The Staten Island sale adds the equity price. Lenders now have a debt comparable; buyers have a sale comparable. The distance between the two will shape the sector's next trades.

Jadian's bid is a scarcity play. The leases produce current income; the dock and rail leave options for what comes later. A 53-acre site with those features on Staten Island cannot be built again. The coverage does not say what yield Jadian underwrote or whether debt sat on top of the equity. The price alone is a statement about supply.

The seller's path is the model for other IOS owners. DH Property Holdings, the seller's affiliate, bought the property in 2020 and 2021. It then put $10 million into the site and sold into a stronger market. The total basis was about $89 million. The gain is roughly $78 million. That is the kind of outcome that draws out owners waiting for the right number.

The right number will vary. A waterfront, rail-served yard in the New York metro area sits at the top of the IOS range; a fenced lot off a rural highway sits at the bottom. Land without infrastructure will trade well below the $3.15 million an acre figure, and the discount will be steep. The spread between those tiers will absorb the sector's next trades.

One sale and one financing do not make a liquid market. They do give IOS its first public number to argue over, adjust, and beat. Owners with comparable yards now have a reason to bring theirs out, and the reference points are on the record.