Innovo, Affinius Land $334M Financing Deal For Bronx Multistory Warehouse
One of the only multistory warehouses in the United States has secured a major recapitalization as it pursues a tenant to fill its nearly 500K SF of available space.
Innovo Property Group and Affinius Capital — formerly Square Mile Capital — procured a $334M financing package for 2505 Bruckner Blvd., the 1M SF two-story warehouse they delivered in the Bronx last year, the firms announced Wednesday.
The recapitalization came in the form of a $250M senior mortgage from Bank OZK, the construction lender on the project, and an $84M mezzanine loan from investment manager PIMCO. Bank OZK loaned the developers $182M to finance construction of the project, according to city property records.
"This recapitalization is a milestone achievement in this project’s lifecycle, especially in this economic climate," IPG CEO Andrew Chung said in a statement. "We believe the quality of the space and its amenities are differentiators and, in a city where most of the industrial offerings are out-of-date, new Class-A spaces are going to continue to be in high-demand."
2505 Bruckner is one of just four multistory warehouses that has been delivered in the United States, along with 640 Columbia St. in Brooklyn and the Grand Avenue Logistics Center in Queens — both also leased by Amazon — and Prologis' Seattle multistory building that was the nation's first when it delivered in 2018.
There are five more of these buildings under construction that combined will span 5.3M SF, but none of them have announced a signed lease. Four of those properties are in New York City and one is in Chicago.
IPG is developing one of those properties, 23-30 Borden Ave. in Long Island City, which will also include dedicated studio space for film and television production. It recently celebrated the topping out of construction on that 840K SF project.
New York City has one of the tightest industrial markets in the country; vacancy for existing buildings was at 1.8% at the end of the first quarter, according to JLL data. There is more than 3.4M SF of warehouse and distribution space under construction, 2.1M SF of which is available for occupancy, per JLL.