Triangle Equities has recapitalized its warehouse project near John F. Kennedy International Airport, set to come online in a matter of weeks.
The Goldman Sachs Asset Management arm joined Triangle in ownership of the Terminal Logistics Center in Jamaica, Triangle announced Monday. The partnership recapitalized the Queens project for $136 million. The financing is split between $61 million in equity from the partners and $75 million in debt supplied by H.I.G. Realty Credit Partners.
The financing replaces $87 million in construction financing provided by CIT Bank and an equity investment provided by Township Capital and a pension fund client advised by L&B Realty Advisors. Construction started in 2020 and the property is scheduled to be ready for occupancy this quarter.
A JLL team led by Geoff Goldstein and Max Herzog represented the joint venture between Goldman Sachs and Triangle in the transaction. In joining ownership of the project, an executive with the Goldman Sachs Asset Management team specifically noted the warehouse’s proximity to both the airport and the Port of New York and New Jersey.
The two-story, 185,000-square-foot industrial condominium at 130-02 South Conduit Avenue is the first vertical air cargo facility on the East Coast, according to an executive from Triangle. The property includes 26-foot clear heights, a 50-foot column grid and 300 pound live-load capacity.
The facility is already fully leased to DO & CO New York Catering. The investment qualifies for tax benefits stemming from its location in an Opportunity Zone.
Triangle, along with Township Capital and the pension fund, purchased the site in 2018 for $25.4 million. The plan was to deliver a five-story, 300,000-square-foot industrial facility by the fall of 2020, but the pandemic, supply chain problems and cost increases delayed its completion, according to Triangle’s Josh Weingarten.
The logistics center is two commercial condominium units. One contains the 185,000-square-foot warehouse that was just recapitalized; the other is still owned by Triangle and its original investment partners.
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