Innovo, Atalaya and Nan Fung Group Acquire LIC Industrial Property for $75M
The new owners will develop a former FreshDirect warehouse into a last-mile distribution center in Long Island City, Queens.
NEW YORK CITY–Atalaya Capital Management, Nan Fung Group and Innovo Property Group are developing a modernized last-mile distribution facility from a former warehouse used by the online grocer FreshDirect, in Long Island City, Queens. They plan to start construction in 2020 with a completion date in 2022.
The buyers purchased the property at 23-30 Borden Ave. from Atlas Capital Group for $75 million according to Real Capital Analytics. Built in 1960, the property currently has 283,110 square feet.
The new owners will transform the property into a multistory, state-of-the-art warehouse to address the area’s growing e-commerce market. Warehouse tenants’ demand for logistics facilities closer to consumers continues to rise as retailers compete in faster deliveries. The site is near the entrance of the Midtown Tunnel and also close to Williamsburg, Brooklyn. Thus, it’s well positioned to meet the demand for logistics spaces near highly concentrated population centers.
“While e-commerce used to be about two-day delivery, customers now want same-day and two-hour delivery. Since 2015, Innovo Property Group has acquired and developed top-quality properties with a vision of adding value,” says Andrew Chung, founder and CEO of Innovo Property Group. “In recent years it has focused on servicing the explosive demand for last-mile logistics facilities within New York City.”
“We are excited to establish a co-GP relationship with Innovo Property Group and look forward to designing an urban warehouse that will make multi-hour delivery a reliable reality for retailers and New Yorkers alike,” says Young Kwon, head of real estate for New York City-based Atalaya.
Founded in 2015, Innovo is backed by Nan Fung Group, a Hong Kong-based global conglomerate with core businesses in property development and investments having net assets of about $13 billion.
A couple of Innovo’s other industrial warehouse projects include teaming up with Square Mile Capital in a 700,00- square-foot, multistory development at 2505 Bruckner Ave. in the Bronx and a 151,500-square-foot, three-story warehouse at 58-30 Grand Ave. in Queens.