Innovo Property Group has closed on a $155 million construction loan for 23-30 Borden Avenue in Long Island City.
The loan, provided by an affiliate of Starwood Property Trust, Inc., is to fund construction costs for an approximately 900,000 s/f industrial development.
The site, which was previously the warehouse of online grocer FreshDirect, will be transformed into a new five-story, industrial building. The building will serve as a last-mile distribution / warehouse facility with on-site parking. The development will feature elevated truck courts and a vertical parking structure providing direct access to each level of the building.
“This transaction supports our philosophy that there is significant value in Long Island City developments,” stated Andrew Chung, founder of Innovo, a New York City-based investment and operating company backed by Nan Fung Group,
“Industrial has been one of the best-performing sectors in real estate, driven by the significant increase in e-commerce spending. We believe that this expansive, state-of-the-art facility with on-site parking will be in high demand.”
IPG acquired the asset in January 2019 with Atalaya Capital Management and Nan Fung Group for $75 million. Since then, the partners have demolished the warehouse and completed plans for the new development.
The location, situated at the entrance of the Midtown Tunnel in Long Island City, is ideal for last-mile distribution to Manhattan, Brooklyn and Queens.
Since 2015, IPG has been investing in New York City with a focus on value-add developments and redevelopments in the outer boroughs. Situated in Queens, Long Island City is one of the fastest-growing neighborhoods in the United States. IPG has been one of the most active industrial players in New York City over the last few years with big bets on last-mile warehouse facilities and the growing demand from e-commerce.