Innovo Property signs $43M refi for 350K storage project in LIC

Innovo Property Group through the entity 28-90 Review Ave Property Owner LLC as borrower signed a refi loan with lender Deutsche Bank through the entity Deutsche Bank Ag, New York Branch valued at $43 million for the development building (V1) at 28-90 Review Avenue in Long Island City, Queens.
On the tax block, there was one new building construction project filed totaling 350,222 square feet. It is a 350,222 square-foot storage (S-1) building submitted by Andrew Chung of Innovo with plans filed July 15, 2022.
The deal closed on May 31, 2023 and was recorded on June 7, 2023. The prior lender was Starwood Property Trust which held debt that had an original loan amount of $28.6 million.

The owner bought the property on March 16, 2022, for $66 million. The signatory for Innovo Property Group was Andrew Chung.

The property

The parcel has frontage of 524 feet and is 654 feet deep with a total lot size of 192,791 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $9.6 million. The most recent loan totaled $28.6 million and was provided by Starwood Property Trust on March 16, 2022.

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.

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 9th highest sale turnover among other neighborhoods in the city with $1.8 billion in sales volume in the last two years. For development, Long Island City is the 4th most active neighborhood among other neighborhoods. It had 9.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 15 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 13 commercial properties representing 10,400 square feet of the 488,155 square feet. The largest owner is LIRR, followed by Innovo Property Group and then Broadway Stages.

The majority, or 100 percent of the 488,155 square feet of built space are industrial buildings, with development buildings next occupying 0 percent of the space.

The borrower

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 $325.4 million in debt, with top three lenders as Cerberus Capital Management, Starwood Property Trust, and PCCP 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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