Triangle Equities, Partners Secure $87M Construction Loan for its Terminal Logistics Center Development Triangle and partners to build air cargo, warehouse and storage space near JFK Airport in Queens, NY
Triangle Equities Development Company and its partners Township Capital Inc. and L&B Realty Advisors LLP announced the closing of an $87 million construction loan for the ground-up development of Terminal Logistics Center, a to-be-built, approximately 300,000 square-foot, Class A air-cargo warehouse and storage facility adjacent to John F. Kennedy International Airport in Queens, N.Y. When completed, the facility will be one of the first modern, multi-story industrial buildings constructed in the country.
JLL Capital Markets worked on behalf of the borrowers, to place the construction loan with CIT Group Inc. JLL had previously worked on behalf of Triangle Equities to secure $14.25 million in equity financing from L&B Realty Advisors LLP and Township Capital for the project and as part of the closing, the joint venture committed an additional $27 million in equity capital. Total capitalization for the project is approximately $129 million.
Located at 130-24 South Conduit Avenue in South Ozone Park, Terminal Logistics Center’s urban location and proximity to the JFK International Airport will allow it to capture the rising demand from air-cargo and freight related tenants as well as last-mile, ecommerce tenants and tenants servicing airport operations. Terminal Logistics Center will also be a state-of-the-art, modern logistics facility in a market where only one new building has been delivered in the past 10 years, and the existing buildings feature an average age of 58 years old. Additionally, modern Class A product in this market features less than 1% vacancy. With 468 feet of frontage at the confluence of the Belt Parkway, Van Wyck Expressway (I-678) and South Conduit Avenue, the multi-story property will offer exceptional signage and visibility to approximately 300,000 commuters per day.
The five-story building will feature market-leading 26-foot clear heights, 29 dock loading positions, 50-foot column grid, 300-pound live load and truck courts that accommodate 53-foot tractor trailers on both the ground and second floors along with warehouse/storage space on the third – fifth floors. The fully secure, gated, state-of-the-art facility will have easy access to cargo areas with a back-door route in and out of JFK.
“Triangle Equities is thrilled to partner with CIT Group Inc. to bring Terminal Logistics to the finish line,” said Josh Weingarten, Director of Capital Markets at Triangle Equities. “We anticipate this multi-level facility will be the first vertical air cargo development on the East Coast, setting a new standard for Class-A air cargo space in the JFK market.”
“We were pleased to work with Triangle Equities to develop the financing for this exciting project,” said Chris Neiderpruem, managing director and group head for CIT’s Real Estate Finance business. “The proximity of the site to a leading international airport makes it an ideal location for a modern logistics facility to efficiently manage and store cargo.”
“Terminal Logistics Center will be a remarkable state-of-the-art air cargo and warehouse facility that is expected to provide significant locational advantages to tenants with its outstanding back-door access to the primary cargo areas of JFK, and is representative of L&B’s strategy of investing in high quality logistic warehouse properties,” said Bernadette Mussell, Vice President of Acquisitions at L&B Realty Advisors. “We are very pleased to have CIT join us in this development, as they share our enthusiasm and vision for the project.”
“The maturation of the e-commerce market creates a growing need for last-mile distribution centers,” said Matthew Gorelik, founder, chairman & CEO at TownShipCapital, LLC. “Terminal Logistic Center’s prime location near JFK Airport and the core strength of the New York market, provide a tremendous opportunity for superior risk-adjusted returns. We are excited to be at the forefront of the multi-level industrial market, which we believe is primed to expand in the nation’s gateway markets in much the same way it has in cities like Tokyo and London.”
The JLL Capital Markets professionals overseeing the financing assignment include Geoff Goldstein, Rob Hinckley, Tyler Peck, Jackie Ferrer and Brendan Collins. The deal was secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc.
About Triangle Equities
Triangle Equities is a full-service, real estate development firm that is prepared to tackle and solve the most difficult development challenges. By actively embracing the complexities inherent to responsible urban development, Triangle achieves sustainable results and unlocks substantial value for its investors, tenants and the communities in which it builds. Visit triangleequities.com for more information.
About Township Capital Inc.
Township Capital is a Los Angeles, CA-based real estate investment manager focused on making programmatic equity co-investments alongside best-in-class sponsors and institutional equity investors nationwide.
About L&B Realty Advisors LLC
L&B Realty Advisors is an employee-owned, SEC-registered real estate investment advisor offering real estate investment management services to institutional investors. Founded in 1965, L&B has earned a track record of successfully acquiring, operating, developing and selling institutional quality office, retail, industrial and multifamily property on behalf of our clients. L&B employs a purpose-driven method to asset selection and an income and value creation approach to asset management.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
