Andrew Chung’s Innovo Property Group has its sights set on building another multi-level warehouse in Queens.
The real estate developer submitted plans this week to construct a six-story, 682,400-square-foot industrial building at 28-90 Review Avenue in Sunnyside.
The warehouse would have 350,200 square feet of floor area across a footprint of 108,600 square feet, according to the filing. It would also have a 174-space parking garage.
A listing for the 175,400 square-foot development site said that a warehouse as large as 450,000 square feet could be built there. Innovo bought the property for $34 million in 2020 from JBL Asset Management, according to city records.
Multi-level warehouses are rare in the U.S., but Chung, Dov Hertz and others have set out to prove they are cost-effective in dense cities with expensive land, such as New York.
Innovo’s plans come as Chung has become the face of warehousing in New York City, buying up and building last-mile distribution centers in the outer boroughs.
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Innovo bought an industrial site at 23-30 Borden Avenue in Long Island City for $75 million from Atlas Capital Group in 2019 with plans to build an 842,000-square-foot, five-story warehouse and distribution center. The owners demolished a warehouse to make way for the project. Innovo landed a $155 million construction loan last year and a $435 million loan this month for the last-mile project. Construction is expected to finish in 2024.
Innovo bought a 150,000-square-foot warehouse at 58-30 Grand Avenue in Maspeth for $40 million in 2018. The developer also teamed up with Westbrook Partners in 2016 to purchase a 650,000-square-foot industrial building at 24-02 49th Avenue in Long Island City for $195 million.
The already bustling industrial market turned white-hot during the pandemic as many companies expanded their e-commerce operations to account for more consumers shopping online. But although vacancies remain extremely low and demand for industrial space continues to outpace supply, a shrinking economy could cool the market off.
Industrial absorption this spring topped 100 million square feet for the fifth straight quarter, meaning more space was leased than was added to the market, according to a report from Newmark. But the figure for the second quarter, 101.3 million square feet, was down 17 percent from the first quarter and 13 percent year-over-year.