Axos Bank, Cerberus Lead $354M Recap Deal for Queens Industrial Build

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Innovo Property Group (IPG) has nabbed a $354 million recapitalization for a planned industrial project in Long Island City, Queens, Commercial Observer has learned.

Axos Bank and Cerberus Capital Management provided the construction debt for Innovo’s development at 28-90 Review Avenue slated for completion in 2025. Goldman Sachs (GS) Asset Management’s Urban Investment Group and IPG supplied equity in the deal.

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Innovo acquired the 28-90 Review Avenue property for $34 million from Florida-based JBL Asset Management in June 2020. 

The site is at the intersection of Review and Borden avenues, just off the Long Island Expressway near the entrance to the Queens Midtown Tunnel.  The project will consist of a warehouse facility with parking set aside for electric vehicles, and will feature roughly 60,000-square-foot floor plates.

“We believe that this new facility has the potential to address the growing demand for warehouse space in the New York City industrial market through its strategic location and convenient access to Manhattan and the outer boroughs,” Michael Lohr, managing director in Goldman Sachs’ Urban Investment Group, said in a statement. 

JLL (JLL) arranged the transaction with a capital markets team led by Christopher Peck, Peter Rotchford, Tyler Peck and Nicco Lupo.

Andrew Chung, founder and CEO of IPG said, the project adds to the developer’s “strategically placed” industrial properties in the New York City area. 

Last month, IPG and Affinius Capital secured a $334 million debt package from Bank OZK and PIMCO for the joint venture’s recapitalization of 2505 Bruckner Boulevard, a 1 million-square-foot logistics center in the Bronx anchored by Amazon. It is also developing a five-story warehouse and movie studio facility at 23-30 Borden Avenue in Long Island City.

Officials at Axos Bank and Cerberus did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com