Innovo Property Group Scoops Bronx Warehouse

NEW YORK CITY – Innovo Property Group, a New York City-based real estate investment and operating company, has acquired 511 Barry St., a 140,000-square-foot warehouse in the Hunts Point neighborhood of the Bronx for $54 million from Baldor Specialty Foods. Granite Point Mortgage Trust Inc., a Pine River Capital managed company, loaned $46 million for the acquisition.

IPG has been bullish on value-add properties in the outer boroughs, so the closing of 511 Barry St. was in alignment with its current investment thesis. In addition, the property was attractive because of its location in a dense submarket for e-commerce companies to access their customer bases, according to Andrew Chung, founder and CEO of IPG. “We believe that last-mile distribution will become increasingly important with the rise in e-commerce and the demand for same- and next-day delivery. 511 Barry Street is a great facility in an ideal location poised to service all of New York City,” he said in a prepared statement.

Brokerage firm Pinnacle Realty represented IPG on the acquisition and Daniel Kaplan and Tim Sheehan of CBRE represented Baldor, a major food distributor who was housed in the fully refrigerated facility ideal for a future cold storage user. It features 32 loading docks, six drive-in bays, up to 22’ ceilings as well as an approximately 90,000-square-foot truck court and parking lot.

IPG has been active on the New York City investment scene since 2015, particularly in the industrial sector and on last-mile warehouse facilities. The acquisition of 511 Barry St. is the second investment the company has made in the Bronx. In 2017, the firm acquired 2505 Bruckner Blvd. with affiliates of Square Mile Capital Management.

GlobeSt.com also recently reported on a $438 million recapitalization of 24-02 49th Ave. in Long Island City, Queens. IPG acquired the approximately 830,000-square-foot mixed-use building with Westbrook in July 2016 for $195 million.