Innovo Property Group (IPG) has secured a $435M refinancing for a 5-story industrial building, known as The Borden Complex, the company is planning to build in Long Island City.
Starwood Property Trust is providing the primary loan while JPMorgan Chase provides mezzanine debt for the project, located at 23-30 Borden Avenue in the Queens neighborhood.
Manhattan-based IPG filed permits with NYC’s Department of Buildings at the end of 2020 to build a 166-foot tall multistory warehouse and studio on the 4.7-acre site, which Innovo purchased for $75M in January 2019 in a joint venture transaction with Atalaya Capital Management and Nan Fung Group.
According to the plans that were filed December 2020, The Borden Complex building will consist of three stories of industrial space and two stories of studio and accessory space encompassing a total of 840K SF. IPG has demolish a FreshDirect warehouse that was occupying the Borden Avenue site to clear the way for the new multistory building.
The industrial space is planned as a last-mile distribution facility servicing the region’s growing e-commerce market, according to IPG’s website.
“The Borden Complex will be a draw to tenants looking to service Manhattan, Brooklyn and Queens with great efficiency,” said Andrew Chung, founder and CEO of IPG, in the statement.
“The industrial sector has continued to outperform other asset classes. Given the optimal location and unique design features of this property, we expect this complex to be in high demand,” Chung said.
The Borden Complex, which is scheduled to be completed in 2024, will feature truck courts and a vertical parking structure with direct access to each level of the building.
Six multistory industrial buildings are in various stages of construction in NYC, with more than a dozen in the planning stages.
NY-based DH Property Holdings (DHPH), in partnership with Goldman Sachs Asset Management, built the first multistory industrial warehouse in NYC, a three-story, 397K SF facility in the Red Hook section of Brooklyn.
The building in Red Hook has two floors that offer 28-foot ceilings and 14 loading docks accessed via an elevated truck court, and a third floor with an 18-foot ceiling that is accessible via a freight elevator.
DHPH, in partnership with Bridge Development Partners and Banner Oak Capital Partners, is developing a 770K SF multistory last-mile warehouse on the 18-acre Sunset Industrial Park in Brooklyn.
Prologis built the first multistory industrial warehouse in the US in 2018, the 590K SF Georgetown Crossing facility in Seattle.