JV Secures $105M for Bronx Distribution Hub
- Sep 09, 2020
Turnbridge Equities has brought in a new equity partner and secured $105 million in pre-development financing for the Bronx Logistics Center, a 1.2 million-square-foot, four-story distribution center project in the New York City borough.
The real estate investment and development firm is teaming up with affiliates of Dune Real Estate Partners in a joint venture that will develop the 14.2-acre site in the South Bronx, Turnbridge announced. Manhattan-based Dune manages Dune Real Estate Funds, which has raised some $4 billion of equity capital to date.
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J.P. Morgan provided the loan for the project, which is located in the Hunts Point neighborhood at 980 E. 149th St. Andrew Scandalios, Tyler Peck and Thomas Pry of JLL represented Turnbridge in the equity recapitalization, while the company’s Kristin Knapp arranged the debt financing.
Turnbridge assembled the five-parcel site in a series of off-market deals beginning in 2018. Upon completion, the Class A industrial property is slated to be one of the region’s largest multi-story, last-mile distribution hubs. Focused on delivering goods to their final destination, the project will benefit from its close proximity to Interstates 95, 87 and 278, which link to more than 17 million people within a 30-minute drive.
The Bronx Logistics Center will have toll-free access to Manhattan just across the Harlem River as well as access to greater New York City and many of its suburbs, and will feature 70 loading docks, clear heights up to 28 feet and 1,400 parking spaces. The new joint venture plans to break ground in early 2021, according to Turnbridge’s website.
In a prepared statement, Turnbridge Managing Principal Ryan Nelson cited high demand from tenants for last-mile distribution space in the supply-constrained region, as well as booming e-commerce trade and growing consumer demand for rapid delivery.
New York City’s industrial market has performed well despite the pandemic and the second-quarter economic downturn, with more than 575,000 square feet of positive absorption, according to a report by CBRE. E-commerce drove demand for warehouse and distribution during the quarter, lowering the availability rate to 8 percent and the vacancy rate to 4.8 percent during the quarter, the firm found.
JLL estimates that same-day delivery will increase from 2 percent to more than 25 percent of e-commerce sales by 2025, a trend that has been accelerated by the pandemic.