PCCP, LLC announced today it has provided a $43.4 million senior construction loan to Innovo Property Group for the development of an approximately 58,950-square-foot (sf) build-to-suit industrial facility located at 1100 Leggett Avenue in the Hunts Point neighborhood of the Bronx, NY. The project is fully pre-leased to CHEP U.S., a subsidiary of Brambles, an Australian-based company that manages the world’s largest pool of share and reuse pallets, crates, and containers.
The single-story, state-of-the-art, warehouse facility is located along Bruckner Boulevard, less than three miles from Manhattan. The Hunts Point submarket draws demand from traditional warehouse and last-mile users alike. Hunts Point serves more than 20 million consumers across the New York Metro and its surrounding areas, with its easy access to major roadways (I-95, I-87, and I-278) that provide strong connectivity to Brooklyn, Queens, New Jersey, and Westchester/CT, all of which are within approximately 30 minutes of the property.
“PCCP believes the loan represents an attractive opportunity to lend to Innovo Property Group, an experienced industrial developer in New York City with a track record of developing and leasing quality infill urban industrial properties,” said Brian Haber, Senior Vice President with PCCP. “Additionally, this Class A facility is in a prime industrial location and is fully pre-leased to CHEP, USA, a tenant with a long and solid operating history.”
Andrew Chung, Founder and CEO of Innovo Property Group said, “The industrial sector continues to dominate amidst current overall market volatility. An extreme lack of supply in New York City creates a supply and demand imbalance in the market. We are thrilled to develop a high-quality, pre-leased urban warehouse at 1100 Leggett Avenue.”
The 128 million-sf New York City outer-borough industrial market has performed exceptionally well, with a current market vacancy at approximately 1.6%.
The financing was arranged by a JLL team led by Chris Peck and Pete Rotchford.