BY SAMANTHA WANDERER
Innovo Property Group (IPG), a New York City-based real estate investment and operating company, closed a $438 million recapitalization of 24-02 49th Ave. in Long Island City.
This was done through an equity joint venture with Nan Fung Group and debt from Axonic Capital and affiliates of Athene Annuity and Life Insurance Company.
In 2016, IPG bought the approximately 830,000-square-foot, seven-story property with Westbrook for $195 million.
The next year, Westbrook and IPG signed an over 30-year lease with The New York City Housing Authority. IPG and Westbrook constructed a commercial condominium for the 600,000-square-foot space.
The building also began reconstruction as a part of a capital improvement program, transforming it from a warehouse to office space. The new infrastructure will now support medical research, biotech, education and traditional office space.
With renovation nearing completion, IPG will soon be looking to lease the remaining 230,000 square feet, which includes the top two floors and ground floor retail.
The available space is a condominium unit in itself, and is meant to act as a “building in a building,” featuring its own ground floor lobby and freight and passenger elevators. This space has the potential to be used as an educational or medical facility.
“This is a unique opportunity for tenants seeking a headquarters and/or campus feel right outside of Manhattan,” said Paul Amrich of CBRE, which is marketing the space for lease under IPG.
This is IPG’s and Nan Fung’s second investment in Long Island City this year. In January, they closed the acquisition of 23-30 Borden Ave., the former Fresh Direct warehouse, for $75 million.
“We are proud of the value we were able to create with Westbrook, who has been a great partner. We are excited to recommit to the asset for its next phase of growth,” stated Andrew Chung, founder and CEO of IPG.
For more information, visit www.innovopg.com.