Prologis has acquired a last-mile logistics warehouse near John F. Kennedy International Airport from Wildflower for $49 million, expanding its footprint in one of the nation's most competitive e-commerce fulfillment markets.
The REIT purchased the 116,725-square-foot facility at 153-44 South Conduit Avenue in Queens, known as the JFK Conduit Logistics Center, through its entity Prologis Exchange NY 2000. Adam Gordon's Wildflower held the property before the sale closed.
The deal reflects the ongoing battle for warehouse space in the New York City metropolitan area, where last-mile logistics facilities command premium prices due to proximity to dense residential populations and major transportation hubs. JFK Airport's position as a major international cargo gateway makes nearby industrial properties particularly valuable for companies managing time-sensitive shipments and returns processing.
Prologis, the world's largest logistics real estate REIT by square footage, operates approximately 1 billion square feet globally. The company specializes in acquiring and leasing facilities to third-party logistics providers, e-commerce operators, and supply chain companies. At $49 million for roughly 117,000 square feet, the deal values the property at approximately $420 per square foot, a pricing level consistent with premium last-mile assets in the NYC market.
For Wildflower and Adam Gordon, the sale provides liquidity from an asset that has appreciated significantly as logistics demand surged post-pandemic. Wildflower's exit from this specific property allows the developer to redeploy capital into other opportunities within its portfolio.
For tenants and logistics operators, a Prologis ownership transition typically brings stability and access to the company's extensive network of industrial clients. Prologis generally maintains long-term leases with quality operators, though rent escalations often follow ownership changes as the REIT adjusts pricing to market rates.
The acquisition underscores the continued consolidation of last-mile logistics real estate into the hands of major institutional players. Independent operators and smaller developers face increasing pressure to compete with REITs that can deploy capital at scale and offer tenants credit strength and operational consistency.
Queens and surrounding areas have emerged as critical logistics hubs for NYC-area commerce. The borough's warehouse inventory supports same-day and next-day delivery services for Manhattan, Brooklyn, and surrounding areas. Properties near JFK also benefit from the airport's cargo operations and international trade flows.
Prologis has been actively acquiring and building in the Northeast region to capitalize on e-commerce growth and supply chain reshoring. The company's presence in New York includes facilities across Queens, the Bronx, Brooklyn, and New Jersey. Each acquisition adds to the company's ability to offer tenants comprehensive coverage across the tristate metropolitan area.
The transaction closes amid a period of relative stability in logistics real estate valuations after a difficult 2022-2023 period when rising interest rates and falling occupancy rates pressured pricing. Cap rates have stabilized, and institutional capital continues to pursue core logistics assets in supply-constrained markets like New York.