Innovo lands $155M construction loan for LIC warehouse

Last-mile distribution center planned at 5-acre lot

New York /
Mar.March 05, 2021 02:00 PM
Innovo Property Group's Andrew Chung with 23-30 Borden Avenue in Long Island City (Google Maps)

Innovo Property Group’s Andrew Chung with 23-30 Borden Avenue in Long Island City (Google Maps)

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.





    Related Articles

    arrow_forward_ios
    Jake’s 58 (Google Maps, iStock)
    Suffolk OTB to acquire Jake’s 58 in $120M deal
    Suffolk OTB to acquire Jake’s 58 in $120M deal
    4 Park Avenue (Feil Organization)
    With 30K-sf lease, SUNY Empire shrinks Manhattan footprint
    With 30K-sf lease, SUNY Empire shrinks Manhattan footprint
    604 Fifth Avenue and Minamoto Kitchoan president Kemmei Okada (Photos via Google Maps, Minamoto Kitchoan)
    Fifth Avenue’s Childs Building sells for $45M
    Fifth Avenue’s Childs Building sells for $45M
    (Getty)
    Different state, same problem: Office availbility soars in NJ
    Different state, same problem: Office availbility soars in NJ
    Brian Feil of the Feil Organization and 360-370 Fulton Street (Google Maps)
    Feil Organization to buy Downtown Brooklyn development portfolio
    Feil Organization to buy Downtown Brooklyn development portfolio
    Photo illustration of Brookfield Property Partners’ Brian Kingston (Brookfield, iStock)
    Struggling hotel company handing Brookfield the keys
    Struggling hotel company handing Brookfield the keys
    G&M Realty's David Wolkoff (Getty, 5Pointz LIC)
    Wolkoff’s $300M for 5Pointz tops outer-borough loan list
    Wolkoff’s $300M for 5Pointz tops outer-borough loan list
    General Assembly's CEO Lisa Lewin (General Assembly)
    General Assembly renews 40K sf lease in Flatiron District
    General Assembly renews 40K sf lease in Flatiron District
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...