Innovo ups debt to $90M with Cerberus Capital Management for industrial in Hunts Point

Innovo Property Group through the entity Oak Point Avenue Gl LLC as borrower increased the debt with lender Cerberus Capital Management through the entity Cre Lender Sub V, LLC valued at $90 million for the midblock industrial building at 1132 Oak Point Avenue in Hunts Point, Bronx.
The deal closed on March 16, 2022 and was recorded on April 6, 2022. The prior lender was Valley National Bank which held debt that had an original loan amount of $20 million.

The property has 150,848 square feet of built space and 959,172 square feet of additional air rights for a total buildable of 1,108,870 square feet according to PincusCo analysis of city data. The loan price per built square foot is $596 and the price per buildable square foot is $81 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.)

Prior sales and revenue

The 150,848-square-foot property generated revenue of $3.4 million or $22 per square foot, according to the most recent income and expense figures.

The property

The 1132 Oak Point Avenue parcel has frontage of 318 feet and is 908 feet deep with a total lot size of 554,435 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 $10.2 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. 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 $5 million on this tax lot.

The neighborhood

In Hunts Point, the majority, or 54 percent of the 15.8 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 1.3 times the average sales volume among other neighborhoods with $370.3 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 626,691 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 21 commercial properties representing 512,161 square feet of the 946,538 square feet. The two identified owners are CenterPoint Properties and Innovo Property Group. There are no active new building construction projects on this tax block.

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

Surrounding

PincusCo has not identified any commerical real estate items of interest within a 400-foot radius of 1132 Oak Point Avenue that occurred over the past 24 months.

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