Innovo Property Group Lands $435M for NYC Warehouse
Starwood Property Trust and J.P. Morgan provided the refinancing loan for the multistory industrial project.
The Borden Complex. Rendering courtesy of Innovo Property Group
The Borden Complex, an upcoming multistory industrial property in Long Island City, N.Y., has received $435 million in refinancing from Starwood Property Trust Inc. and J.P. Morgan. Eastdil Secured LLC served as advisor for the financing deal.
Developer Innovo Property Group picked up the asset in 2019 for $75 million, in a joint venture with Atalaya Capital Management and Nan Fung Group. Following their purchase, the partners demolished the existing 276,705-square-foot FreshDirect warehouse, formerly situated on the site. In 2021, Starwood provided a $155 million construction loan for the project. At that point, the upcoming distribution center was set to encompass roughly 900,000 square feet.
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The logistics and warehouse building will be located at 23-30 Borden Ave., providing easy access to Manhattan, Brooklyn and Queens, as well as NYC’s largest airports. The property will offer onsite parking, truck courts and vertical parking, which will connect all levels of the building. Completion is slated for 2024.
Developing industrial space in NYC
Founded by Andrew Chung, Innovo is a New York City-based real estate company backed by Nan Fung Group. Less than a year ago, Innovo sold one of its Bronx industrial facilities in an off-market transaction. CenterPoint Properties purchased the nearly 155,000-square-foot asset at 511 Barry St. for $119 million. The warehouse last traded in 2019, when Innovo paid $54.3 million for the 4.6-acre property.
Fueled by high demand, the industrial sector is adjusting to shifting market conditions. Multistory developments are gaining popularity, especially in denser urban areas. In early 2021, DH Property Holdings commenced construction on a 370,000-square-foot, three-story distribution facility in Brooklyn. In Chicago, Logistics Property Co. is moving forward with Chicago’s first multistory industrial facility.
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