Innovo in contract to buy LIC industrial site for $75M

Company is purchasing 23-30 Borden Avenue from Atlas Capital Group
By Eddie Small | December 05, 2018 12:00PM

Andrew Chung and 23-30 Borden Avenue in Long Island City

Andrew Chung’s Innovo Property Group is in contract to buy the old warehouse of online grocer FreshDirect in Long Island City for about $75 million, according to sources familiar with the deal.

The company is purchasing 23-30 Borden Avenue from Atlas Capital Group. The site has about 200,000 square feet of ground floor space and 175,000 square feet of air rights, and it includes a 6,000-foot LED sign as well.

A Cushman & Wakefield team of Adam Spies, Doug Harmon, Adam Doneger and Josh King brokered the transaction.

The brokers and Chung declined to comment on the deal, and representatives for Atlas also did not comment.

Innovo’s specific plans for the site were unclear, but they are likely to undertake a major rehabilitation or redevelopment of the facility, which could be a good fit for last-mile distribution services, sources said.

Atlas had purchased the facility from FreshDirect in 2016 for $48 million. The online grocer recently completed a lengthy and controversial move of its headquarters from Long Island City to the South Bronx.

Innovo has made multiple investments in Queens in recent months. The firm went under contract earlier this year to buy 58-30 Grand Avenue in Maspeth for about $40 million, and it is planning an unspecified investment in Long Island City’s 28-90 Review Avenue as well. It also recently signed a sublease at 1132 Oak Point Avenue in the Bronx that was valued at $64.2 million.