Turnbridge, Dune sign $381M construction loan with KKR for Hunts Point logistics

By Varvara Budetti

Turnbridge Equities and Dune Real Estate Partners signed a first mortgage construction loan totaling $381.24 million with KKR Real Estate Finance Trust for their planned Bronx Logistics Center in Hunts Point, the Bronx.

The loan includes five parcels of land including at 920, 940 and 980 East 149th Street.

In May, Turnbridge Equities filed for the largest development plans of the month, which was at this parcel. That month, the developer filed a permit application for construction of an 879,203-square-foot warehouse building at 950 East 149th Street.

The property is owned by Dune and Turnbridge. Last year Dune paid Turnbridge $141 million for four parcels and the Friedland family’s Westrock Development $32.5 million for a fifth parcel.

Last year, partners Turnbridge and Dune signed a $100 million predevelopment loan with JPMorgan Chase. According to a press release from Turnbridge Equities, their new facility could be one of the largest multi-story, last-mile distribution facilities in New York.

“We believe strongly in this one-of-a-kind asset and the Bronx industrial market,” said Ryan Nelson, Managing Principal, Turnbridge in the press release. “There is enormous tenant demand for quality, last mile distribution space in this supply-constrained region.  The innovative design and unbeatable location of the Bronx Logistics Center is poised to capitalize on the surging e-commerce trade in this area and growing consumer demand for faster and more convenient deliveries.”

Ryan Nelson was the signatory for Turnbridge and Dune, through the entity 980 BLC Owner LLC.  The deal closed on August 27, 2021 and was recorded on September 14, 2021. The construction financing was arranged by a JLL team of Andrew Scandalios, Christopher Peck, Peter Rotchford and Tyler Peck.

The five properties have a total buildable of 1,258,338 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $253 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.)

Over the past five years, there have been 4 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 3 renovation/alteration projects (A2) applied for with a total estimated value of $619,386. There has been one demolition project filed for the parcels over the past five years.

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