New York Is the Multi-Story Industrial Capital of U.S.

Two years ago, you could count the number of multi-story mega-warehouse projects in NYC on the fingers of one hand.

Now, you’ll need both hands and you might as well take off your socks. What we’ll call the vertical industrial sector in NYC encompasses 7.3M SF, a rapid expansion that shows no signs of slowing down.

This week, the Goodman Group filed plans to build what will become NYC’s tallest multi-story warehouse—topping out at more than 200 feet with five really large stories.

The Australia-based firm is planning to build the 650K SF vertical warehouse at 40-40 Northern Boulevard in Astoria, Queens. The facility will be equipped with 50 truck bays, according to plans filed with NYC’s Department of Buildings.

The project in Queens will be Goodman’s first in NYC and seventh in the Northeast. The company has built warehouses in Carlstadt, NJ near MetLife Stadium, in Allentown, PA, and in Central PA near Harrisburg.

Goodman purchased the 3.2-acre Astoria site, which has been occupied by a gas station and a Lexus dealership, in 2021 for $128M.

Earlier this month, Innovo Property Group solidified its position as the leading NYC-based builder of multi-story industrial warehouses by securing a $345M recapitalization that includes construction financing for a six-story industrial building in Long Island City.

Axos Bank and Cerberus Capital Management are providing construction financing for the project, located at 28-90 Review Avenue. Innovo bought the site from JBL Asset Management in 2020 for $34M.

Goldman Sachs Asset Management’s Urban Investment Group is partnering with Innovo to provide equity in the deal, the companies announced this week. A JLL team arranged the debt and equity.

Innovo is planning to build a 682K SF multi-story industrial facility at the site, along with a parking garage. The warehouse, which will offer 60K SF floor plates for tenants, is slated to be delivered at the end of 2025.

The Long Island City project is the third industrial mega-project Innovo has undertaken in NYC in the past year, amassing financial backing totaling more than $1B.

Last month, Innovo and Affinius Capital landed $334M in financing from Bank OZK and PIMCO for a 1.1M SF industrial campus at 2505 Bruckner Boulevard. Amazon inked a deal in October for 569K SF of space at the facility.

Last year, Innovo secured a $435M recap for a five-story, 842K SF warehouse it is building at 23-30 Borden Avenue in Long Island City, with delivery slated for Q2 2024.