Innovo Property Group (IPG), a New York City-based real estate investment and operating company founded by Andrew Chung and backed by Nan Fung Group, today announced it has closed on a $155 million construction loan for 23-30 Borden Avenue in Long Island City, Queens, New York. The loan, provided by an affiliate of Starwood Property Trust Inc., is to fund construction costs for an approximately 900,000-square-foot industrial development.
The site, which was previously the warehouse of online grocer FreshDirect, will be transformed into a five-story, last-mile distribution/warehouse facility with on-site parking. The development will feature elevated truck courts and a vertical parking structure providing direct access to each level of the building.
“This transaction supports our philosophy that there is significant value in Long Island City developments,” said 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.”
IPG acquired the asset in January 2019 with Atalaya Capital Management and Nan Fung Group for $75 million. Since then, the partners have demolished the warehouse and completed plans for the new development. The location, situated at the entrance of the Midtown Tunnel in Long Island City, is ideal for last-mile distribution to Manhattan, Brooklyn and Queens, the company said.
Since 2015, IPG has invested in New York City, with a focus on value-add developments and redevelopments in the outer boroughs. Situated in Queens, Long Island City is one of the fastest-growing neighborhoods in the United States.