Innovo real estate group (IPG) picked up $435 million in debt led by Starwood Real Estate Trust to refinance a new industrial development in Long Island City, the real estate investment firm announced Monday afternoon.
Starwood provided the Senior Loan while JPMorgan Chase provided mezzanine debt on IPG The Borden Complex property at 23-30 Borden Ave.. IPG acquired the site for $75 million in January 2019 in a joint venture with Atalaya Capital Management and Nan Fung Group before demolishing FreshDirect warehouse on site to make way for a new project.
“The Borden complex will attract tenants looking to serve Manhattan, Brooklyn and Queens with high efficiency,” Andrew Chung, founder and CEO of IPG, said in a statement. “The industrial sector continued to outperform other asset classes, and given the optimal location and unique design features of this property, we expect this complex to be in high demand.”
Manhattan-based IPG plans to transform the Borden complex into a state-of-the-art, multi-story logistics and warehouse space with on-site parking upon completion. The Queens industrial facility, which is a 10-minute drive from Midtown Manhattan, will include truck lots and a vertical parking structure providing direct access to every level of the building. Construction of the facility is expected to be completed in 2024.
JPMorgan and Starwood declined to comment.
Andrew Coen can be reached at [email protected]