Innovo Property Group Secures $155M for LIC Development
The company, alongside partners Atalaya Capital Management and Nan Fung Group, will utilize the loan to complete a 900,000-SF, last-mile distribution warehouse facility.
NEW YORK, NY – The New York City-based real estate investment and operating company, Innovo Property Group has closed on a $155 million construction loan for an industrial development in Long Island City, NY.
The loan was provided by an affiliate of Starwood Property Trust Inc. and will be used to fund the construction costs for a 900,000-square-foot development, located at 23-30 Borden Ave.
The site will be transformed into a new five-story, industrial building, which will serve as a last-mile distribution warehouse facility. The development will feature elevated truck courts and an on-site vertical parking structure, which will provide direct access to each level of the building.
Innovo Property Group, in partnership with Atalaya Capital Management and Nan Fung Group, acquired the asset in January 2019 for $75 million. Since acquiring the asset, the partners have demolished the prior warehouse and completed plans for the new development.
Previously, the site served as the warehouse of the online grocer, FreshDirect.
“This transaction supports our philosophy that there is significant value in Long Island City developments,” states Innovo Property Group founder, Andrew Chung. “Industrial has been one of the best-performing sectors in real estate, driven by the significant increase in e-commerce spending. We believe that this expansive, state-of-the-art facility with on-site parking will be in high demand.”