Innovo Property Group and Affinius Capital have wrapped up a $334 million recapitalization of an industrial asset in New York City’s the Bronx.
The facility is a 1 million-square-foot, multi-story industrial building which came online in 2022 at 2505 Bruckner Blvd. The property’s existing construction lender, Bank OZK, provided a $250 million senior mortgage, while PIMCO loaned $84 million in mezzanine financing.
Cushman & Wakefield‘s Equity, Debt & Structured Finance team, comprised of Gideon Gil, Lauren Kaufman, Zachary Kraft and Dale Braverman, exclusively advised Innovo and Affinius on the transaction.
The property’s previous debt dates back to 2020, when the developers obtained $305 million for the construction of the two-story facility. The financing package included $294 million from Bank OZK, according to CommercialEdge.
A Bronx multi-story facility
The logistics facility rises on a 20-acre site which once housed Whitestone Multiplex Cinemas. IPG and Affinius—formerly Square Mile Capital Management—had acquired the development site from Extell Development Co. for $75 million in 2017.
Featuring 28- to 32-foot clear heights, 106 loading doors and 664 interior parking spaces for cars and sprinter vans, the property is 53 percent leased to Amazon, CommercialEdge data shows. Its location allows tenants to serve up to 9.4 million people within a 15-mile radius as it provides access to the Cross Bronx Expressway, the Hutchinson River Parkway and the Bruckner Expressway.
Supply-chain issues and increased consumer demand in space-constrained markets have contributed to the need for multi-story industrial facilities. IPG recently topped out on its latest multi-story industrial project in Queen’s Long Island City neighborhood. Construction on the mixed-use development began in 2022, with completion expected in the spring of 2024.