Innovo Property Group signs $27M acquisition loan with PCCP for industrial in Hunts Point

Innovo Property Group through the entity 1100 Leggett Owner LLC as borrower signed an acquisition loan with lender PCCP through the entity Pccp Patriot Debt Venture I, LLC valued at $27 million for the industrial building (F4) at 1100 Leggett Avenue in Hunts Point, Bronx.
The deal closed on July 15, 2022 and was recorded on August 3, 2022. The prior lender was Amalgamated Bank which held debt that had an original loan amount of $2 million. The property has 59,889 square feet of built space and 59,889 square feet of additional air rights for a total buildable of 119,778 square feet according to PincusCo analysis of city data. The loan price per built square foot is $450 and the price per buildable square foot is $225 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 owner bought the property on July 15, 2022, for $21.5 million. The signatory for Innovo Property Group was Ryan Bathie. The signatory for PCCP was Steve Towle. This is an acquisition loan with an $8.3 million building loan and a $4.8 million project loan.

Prior sales and revenue

The 59,889-square-foot property generated revenue of $712,167 or $12 per square foot, according to the most recent income and expense figures.

The property

The 1100 Leggett Avenue parcel has frontage of 240 feet and is 184 feet deep with a total lot size of 59,889 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $3.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received two DOB violations and $1,000 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Hunts Point, the majority, or 59 percent of the 14.5 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 15 percent of the space. In sales, Hunts Point has near average sales volume among other neighborhoods with $366.2 million in sales volume in the last two years and is the 2nd highest in Bronx. For development, Hunts Point has had very little major development activity relative to other neighborhoods.It had 724,405 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 21 commercial properties representing 512,161 square feet of the 946,538 square feet. The largest owner is CenterPoint Properties, followed by Innovo Property Group and then Feil Organization.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 946,538 square feet of built space are industrial buildings.

The borrower

The PincusCo database currently indicates that Innovo Property Group owned at least 12 commercial properties in New York City with 970,563 square feet and a city-determined market value of $89.5 million. (Market value is typically about 50% of actual value.) The portfolio has $298.4 million in debt, with top three lenders as Cerberus Capital Management, Starwood Property Trust, and Starwood Capital Group respectively. Within the portfolio, the bulk, or 67 percent of the 970,563 square feet of built space are office properties, with industrial properties next occupying 33 percent of the space. The bulk, or 71 percent of the built space, is in Queens, with Bronx next at 29 percent of the space.

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