Starwood provides $ 155 million construction loan for Innovo’s LIC industrial project – Business Observer
Starwood Real Estate Trust provided $ 155 million in construction debt to Innovo Real Estate Group to finance the construction of a planned 900,000 square foot industrial property in Long Island City, Queens, according to an Innovo announcement.
The financing relates to the five-storey industrial property of Innovo in 23-30 Borden Avenue, for which it filed plans with the city at the end of 2020.
Innovo will develop the Hunter’s Point site, which was previously used by Grover online DirectFee, to serve as a last mile distribution and warehousing facility, according to information from Innovo. The plans of the company deposited with the lists of the Department of the buildings of the city KSS Architects as architect of the project, and he plans to complete construction in 2022, according to Innovo and according to information from Nan Fung Groupthe website of.
Innovo, alongside the Chinese real estate developer and investor Nan Fung Group and Atalaya Capital Management, bought the site in january 2019 for $ 75 million of Atlas Capital Group, with plans to start construction on this project last year.
Eastdil secure arranged debt financing in the deal, sources said.
“This transaction supports our philosophy that Long Island City developments have significant value”, Founder and CEO of Innovo Andrew Chung said in a statement. “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. “
Since the acquisition, the trio have demolished the existing FreshDirect warehouse and solidified their plans for the new project, which will provide direct access for last mile distribution to the rest of Queens, as well as Manhattan and Brooklyn, due to its its location at the entrance to the Midtown Tunnel and its proximity to Brooklyn.
Innovo is done a number of splashes in the New York industrial market in recent years, including in April 2020 – right after COVID-19 gripped the economy – when it locked down over $ 300 million in construction debt of OZK Bank and EverWest Real Estate Investors to build a 1 million square foot industrial property in the Bronx, as the trade observer previously reported. Innovo is a partner of Capital management per square mile in this agreement.
This story has been updated to include that Eastdil Secured arranged the debt financing provided to Innovo.