Innovo Property, Square Mile Capital Receive $305M Construction Financing for Industrial Facility in the Bronx
NEW YORK CITY — Innovo Property Group (IPG) and equity partner Square Mile Capital Management LLC have received $305 million in financing for the development of a 1 million-square-foot, two-story industrial facility in New York City’s Bronx borough. The joint venture acquired the land in 2017. Construction is underway with completion slated for first-quarter 2022.
The last-mile distribution property is situated on 20 acres at 2505 Bruckner Blvd., nine miles from LaGuardia Airport, 15 miles north of John F. Kennedy International Airport and at the intersection of Interstates 95, 278 and 295. Additionally, the facility is located within 30 miles of 9.4 million people.
The facility will feature 133 exterior parking spaces for trailers and box trucks as well as 664 interior parking spaces for cars and sprinter vans. The building will offer direct loading on the first and second floors, each with a 130-foot truck court. The first floor will feature 32-foot clear heights, 40-foot-by-40-foot column spacing and cross-docked loading with 74 dock doors and two drive-in doors. The second floor will be accessible to 53-foot tractor-trailers via two double-wide ramps and will feature 28-foot clear heights, 80-foot-by-80-foot column spacing, 37 loading dock doors and two drive-in doors.
“As in many U.S. metro areas, New York City’s need for well-located, last-mile distribution facilities has been underserved,” says Square Mile Capital CEO Craig Solomon. “The current pandemic has certainly exacerbated that need for sufficient supply-chain infrastructure as demand for secure deliveries is threatening to far outstrip our warehouse space supply. This is not just a momentary spike in demand; it will continue to grow. Accordingly, we have established a focused last-mile property investment strategy and will continue to seek more opportunities.”
Bank OZK and Denver-based EverWest Real Estate Investors provided the $305 million construction loan to the developers. Adam Spies, Adam Doneger, Steve Kohn and Alex Hernandez of Cushman & Wakefield arranged the financing on behalf of the borrowers. JLL will handle leasing efforts of the property, targeting a variety of users including e-commerce, third-party logistics and omnichannel retail companies.
New York City-based IPG is a privately held real estate investment and operating platform focused on acquiring and managing assets in and around New York City. Andrew Chung founded IPG in 2015, and the company is backed by Nan Fung Group, a Hong Kong-based global conglomerate with core businesses in property development and investment.
Square Mile Capital, also based in New York City, is a privately held, integrated institutional real estate and investment management firm that supplies flexible equity and debt capital solutions.
— Alex Tostado