Massive LIC warehouse development secures $ 155 million in construction funding
The online food ordering company struggled when it moved its warehouse in Queens to a 400,000 square foot center in Hunts Point. FreshDirect customers have complained about out-of-stock items and shrinking delivery slots, Crain’s reported last year.
“This transaction supports our philosophy that developments in Long Island City have significant value,” said Chung. “Industrial has been one of the best performing real estate sectors, driven by the significant increase in e-commerce spending. We believe this large, state-of-the-art facility with on-site parking will be in high demand. “
With Long Island City becoming something of a packaging hub, Innovo’s redevelopment will complement other industrial projects in the region that are being built to meet the city’s growing demand for e-commerce.
Industrial leasing in the city has performed well relative to other commercial submarkets, with around 7.2 million square feet leased in 2020, according to a report from CBRE. As e-commerce businesses continued to take up space in the city, the average lease size has shrunk due to a lack of large available locations, according to the report.
Amazon is targeting the Queens district for its last delivery station. It takes 20,000 square feet at 8-50 21st St. from developer George Xu, the company announced in February.
The move came after the online retail giant scrapped plans to build its famous HQ2 in Long Island City after backlash from community members. The company claimed nine warehouses across town last year in areas like Red Hook, Hunts Point and Middle Village.
Innovo has also become active in the New York warehouse market in recent years. In April of last year, the company secured a $ 305 million loan to finance the construction of a 1 million square foot industrial project in the Bronx.
In September 2019, the company purchased the stage from Westbrook Partners in a Queens warehouse at 24-02 49th Avenue for $ 430 million.