Innovo Property Group’s massive warehouse development in Long Island City has secured a big chunk of construction financing.
Innovo scored a $155 million construction loan for a new building at 23-30 Borden Avenue, which was previously home to a FreshDirect warehouse. The firm plans to build an 842,000-square-foot, five-story industrial structure on a 4.7-acre lot. The loan was provided by an affiliate of Starwood Property Trust, according to Innovo.
The new building will serve as a last-mile distribution center, with elevated truck courts and a vertical parking structure that will provide direct access on each level, the developer said.
The industrial sector has been one of the bright spots for commercial real estate as more people shop online. The loan proves the value of Innovo’s planned “expansive, state-of-the-art facility,” CEO Andrew Chung said in a statement.
Innovo, in partnership with Atalaya Capital Management and Hong Kong-based Nan Fung Group, acquired the property in January 2019 for $75 million. Since then, the owners have demolished the existing warehouse to make way for the new building.
Gary Phillips, Phil McKnight and Steve Binswanger of Eastdil Secured arranged the financing for Innovo.
Innovo has become one of the city’s most active players in the industrial sector. Last year, the firm landed on a $305 million construction loan for a 1 million-square-foot warehouse development in the Bronx. The company acquired the site in 2017 from Extell Development for $75 million.