Innovo Property Group has entered into a $ 155 million loan for the construction of 23-30 Borden Avenue in Long Island City.
The loan, made by a subsidiary of Starwood Property Trust, Inc., is to finance the construction costs of an industrial development of approximately 900,000 s / f.
The site, which was previously the warehouse for the 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 include elevated truck lots and a vertical parking structure providing direct access to each level of the building.
“This transaction supports our philosophy that Long Island City developments have significant value,” said Andrew Chung, Founder of Innovo, a New York-based investment and operating company backed by the Nan Fung Group. ,
“Industrial has been one of the best performing real estate sectors, driven by the significant increase in e-commerce spending. We believe this large, 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, located at the entrance to 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 with a focus on value-added developments and redevelopments in the outlying districts. Located in Queens, Long Island City is one of the fastest growing neighborhoods in the United States. IPG has been one of New York City’s busiest industry players over the past few years with big bets on last mile warehouses and growing demand for e-commerce.
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