Innovo pays $6.2M for LIC industrial, in contract since 2020

Innovo Property Group through the entity 25-20 Borden East Parcel Owner LLC paid $6.2 million to John Pantanelli of Swing Staging through the entity Oakland Trading Corp. for the industrial building (E9) at 25-20 Borden Avenue in Long Island City, Queens. The expected use is ground up development.
The deal closed on December 5, 2024 and was recorded on December 24, 2024. The property has 71,024 square feet of built space and 157,811 square feet of additional air rights for a total buildable of 228,712 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $87 and the price per buildable square foot is $27 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for John Pantanelli was John Pantanelli. The signatory for Innovo Property Group was Andrew Chung. The contract date was August 7, 2020.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Innovo Property Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller John Pantanelli had not purchased any other properties and sold two properties in two transactions for a total of $13.6 million over the same time period.

The property

The industrial building in Long Island City has 71,024 square feet of built space and 157,811 square feet of additional air rights for a total buildable of 228,712 square feet according to a PincusCo analysis of city data. The parcel has frontage of 350 feet and is 350 feet deep with a total lot size of 114,356 square feet. The lot is irregular. The zoning is M3-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Long Island City, The bulk, or 32 percent of the 60.1 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 31 percent of the space. In sales, Long Island City has the 8th highest sale turnover among other neighborhoods in the city with $1.1 billion in sales volume in the last two years. For development, Long Island City is the 8th most active neighborhood among other neighborhoods. It had 5.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of seven of the 10 commercial properties representing 139,164 square feet of the 161,924 square feet. The largest owner is Atalaya Capital Management, followed by LIRR and then John P. Pantanelli.
On the tax block, there was one new building construction project filed totaling 679,638 square feet. It is a 679,638 square-foot storage (S-1) building submitted by Innovo Property Group and filed by Andrew Chung with plans filed December 24, 2020 and permitted December 1, 2021.

The majority, or 74 percent of the 161,924 square feet of built space are industrial buildings, with specialty buildings next occupying 26 percent of the space.

The buyer

The PincusCo database currently indicates that Innovo Property Group owned at least seven commercial properties in New York City with 324,476 square feet and a city-determined market value of $67.1 million. (Market value is typically about 50% of actual value.) The portfolio has $368.4 million in debt, with top three lenders as Cerberus Capital Management, Deutsche Bank, and Starwood Property Trust respectively. Within the portfolio, the bulk, or 100 percent of the 324,476 square feet of built space are industrial properties, with development properties next occupying 0 percent of the space. The bulk, or 92 percent of the built space, is in Bronx, with Queens next at 8 percent of the space.

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