Triangle Equities Acquires Site for Multi-Level, Multi-Tenant Cargo Facility Near JFK
Triangle Equities on March 6, announced the $25.4 million acquisition of a development site located near John F. Kennedy International Airport in Queens, New York. The project site is to be developed as a state-of-the-art, approximately 300,000-square-foot, multi-level industrial building. The facility will be the first multi-level, multi-tenant air cargo and distribution facility in New York City. Triangle executed the land acquisition and development financing through a strategic partnership with a pension fund advised by L&B Realty Advisors, an acquisition loan from Citizens Bank and additional equity capital from Township Capital.
The three-story industrial and air cargo facility will feature first- and second-floor industrial space – both floors will have loading docks accessed via truck ramps, permitting full-sized trailers to dock, load and unload directly into their floors. The project is focused to deliver new-construction, Class A industrial space to the JFK market – currently underserved by such space – and will include market leading clear heights, heavy floor loads and large structural column spacing.
“With this site, we will be able to develop a unique product that has not yet been delivered to the New York City industrial sector,” said Lester Petracca, President of Triangle Equities. “By making this a vertical, multi-level facility, we are able to maximize use of the site, thereby increasing the potential impact this project will have on the growth of air cargo at JFK airport and the New York City economy.”
“We have seen a paradigm shift in the retail and industrial sectors and this facility will offer tenants an ideal opportunity for air cargo business, third-party logistics and e-commerce distribution firms to enter or expand within this urban market,” said Josh Weingarten, Director of Capital Markets at Triangle Equities. “We have put together a best-in-class design and construction team and are eager to begin construction of this much needed product.”
“L&B was attracted to the project due to the strength of the market and location adjacent to JFK Airport,” said Bernadette Mussell, Vice President of Acquisitions at L&B Realty. “The investment is consistent with L&B’s strategy of investing in high quality industrial facilities with the potential for above average returns. L&B is looking forward to a successful partnership with a reputable and experienced developer like Triangle.”
“Our compliments and continued support to Triangle Equities for being on the forefront of multi-story logistics development in the United States,” said William Butler of Citizens Bank. “The team in place at Triangle Equities excels at completing highly structured transactions with added complexity and the proposed multi-level industrial is another example of forward thinking development at an intricate location.”
“Township has been actively investing in industrial projects around major US MSAs over the last 12-months. We continue to see a shifting demand from high-credit users toward newly constructed Class A product. The maturation of the e-commerce market creates a growing need for last-mile distribution centers in the largest land-constrained US markets,” said Township Capitals’s CEO, Matthew Gorelik. “The location relative to JFK Airport and 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.”
This project aligns with the goals of the JFK Action Agenda through Port Authority of New York & New Jersey and NYCEDC and will contribute towards meeting the published forecast growth in the Action Agenda through increasing access to Class A industrial space abutting the airport, providing best-in class space to facilitate operational improvements, and more efficient and direct access to the airport for air cargo related service providers.
Located one quarter mile from JFK Airport, the site is conveniently accessible and features frontage on the Belt Parkway. As the region’s biggest and busiest air cargo airport, JFK easily accommodates long-haul direct and nonstop international and transcontinental traffic. The property is also located near the Port of New York & New Jersey, one of the largest natural harbors in the world and the third largest port in the U.S.
Triangle Equities worked with Holliday Fenoglio Fowler, L.P. (HFF) to arrange the investment in common equity and to place a $19 million, floating-rate loan with Citizens Bank for land acquisition and pre-development costs. The construction manager for the project is March Associates and the design architects are Craft Architects and GF55 Partners.
The development is slated to break ground in Winter 2019 with tenant occupancy expected in Summer 2020.
TRIANGLE EQUITIES ACQUIRES SITE FOR FIRST MULTI-LEVEL, MULTI-TENANT INDUSTRIAL & AIR CARGO FACILITY IN NEW YORK CITY
-- Brand New Facility to be Developed Near JFK Airport --
Queens, NY, March 6, 2018 – New York-based developer Triangle Equities today announced the $25.4 million acquisition of a development site located near John F. Kennedy International Airport in Queens, New York. The project site is to be developed as a state-of-the-art, approximately 300,000-square-foot, multi-level industrial building. The facility will be the first multi-level, multi-tenant air cargo and distribution facility in New York City. Triangle executed the land acquisition and development financing through a strategic partnership with a pension fund advised by L&B Realty Advisors, an acquisition loan from Citizens Bank and additional equity capital from Township Capital.
The three-story industrial and air cargo facility will feature first- and second-floor industrial space – both floors will have loading docks accessed via truck ramps, permitting full-sized trailers to dock, load and unload directly into their floors. The project is focused to deliver new-construction, Class A industrial space to the JFK market – currently underserved by such space – and will include market leading clear heights, heavy floor loads and large structural column spacing.
“With this site, we will be able to develop a unique product that has not yet been delivered to the New York City industrial sector,” said Lester Petracca, President of Triangle Equities. “By making this a vertical, multi-level facility, we are able to maximize use of the site, thereby increasing the potential impact this project will have on the growth of air cargo at JFK airport and the New York City economy.”
“We have seen a paradigm shift in the retail and industrial sectors and this facility will offer tenants an ideal opportunity for air cargo business, third-party logistics and e-commerce distribution firms to enter or expand within this urban market,” said Josh Weingarten, Director of Capital Markets at Triangle Equities. “We have put together a best-in-class design and construction team and are eager to begin construction of this much needed product.”
“L&B was attracted to the project due to the strength of the market and location adjacent to JFK Airport,” said Bernadette Mussell, Vice President of Acquisitions at L&B Realty. “The investment is consistent with L&B’s strategy of investing in high quality industrial facilities with the potential for above average returns. L&B is looking forward to a successful partnership with a reputable and experienced developer like Triangle.”
“Our compliments and continued support to Triangle Equities for being on the forefront of multi-story logistics development in the United States,” said William Butler of Citizens Bank. “The team in place at Triangle Equities excels at completing highly structured transactions with added complexity and the proposed multi-level industrial is another example of forward thinking development at an intricate location.”
“Township has been actively investing in industrial projects around major US MSAs over the last 12-months. We continue to see a shifting demand from high-credit users toward newly constructed Class A product. The maturation of the e-commerce market creates a growing need for last-mile distribution centers in the largest land-constrained US markets,” said Township Capitals’s CEO, Matthew Gorelik. “The location relative to JFK Airport and 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.”
This project aligns with the goals of the JFK Action Agenda through Port Authority of New York & New Jersey and NYCEDC and will contribute towards meeting the published forecast growth in the Action Agenda through increasing access to Class A industrial space abutting the airport, providing best-in class space to facilitate operational improvements, and more efficient and direct access to the airport for air cargo related service providers.
Located one quarter mile from JFK Airport, the site is conveniently accessible and features frontage on the Belt Parkway. As the region’s biggest and busiest air cargo airport, JFK easily accommodates long-haul direct and nonstop international and transcontinental traffic. The property is also located near the Port of New York & New Jersey, one of the largest natural harbors in the world and the third largest port in the U.S.
Triangle Equities worked with Holliday Fenoglio Fowler, L.P. (HFF) to arrange the investment in common equity and to place a $19 million, floating-rate loan with Citizens Bank for land acquisition and pre-development costs. The construction manager for the project is March Associates and the design architects are Craft Architects and GF55 Partners.
The development is slated to break ground in Winter 2019 with tenant occupancy expected in Summer 2020.
ABOUT TRIANGLE EQUITIES
Triangle Equities was established in 1986 and has earned the reputation of a well-respected, professional, full service, real estate development firm. Lester Petracca, its principal, has combined the construction expertise he gained as partner at a family operated construction firm, with over 30 years of development experience. Triangle and its related entities develop, own, and manage commercial, residential, and mixed use properties in the New York Metropolitan area.
Triangle Equities focuses on “value-added” developments and specializes in city projects, earning an excellent reputation for working together with government agencies and skillfully navigating the most demanding public approval processes. By actively embracing the complexities inherent to responsible urban development, Triangle has achieved sustainable results and unlocked substantial value for its investors, tenants and the communities it builds in. For more information, please visit: www.triangleequities.com.
ABOUT L&B REALTY
L&B Realty Advisors, LLP, provides investment services including research, portfolio management, acquisitions, asset management and development management to institutional investors and individual clients in office, retail, industrial and multifamily real estate. The company manages a national portfolio of approximately 20 million square feet of office, retail, industrial and multifamily properties valued at $8.6 billion. For more information visit: http://www.lbrealty.com.
ABOUT CITIZENS BANK
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $152.3 billion in assets as of December, 2017. Headquartered in Providence, Rhode Island, Citizens operates in most national markets offering a broad range of retail and commercial banking products. Credit products include acquisition and development loans, bridge financing, permanent mortgage financing, construction financing, as well as letters of credit and revolving lines of credit. CRE offers an array of deposit products including tenant escrows and remote deposit, as well as cash management products designed for commercial real estate companies.
ABOUT TOWNSHIP CAPITAL
Township Capital is a Real Estate Private Equity firm headquartered in Los Angeles, CA. Township focuses on passive equity investments alongside best-in-class operators, developers and institutional investors throughout the US in multifamily, student housing, senior living, industrial, office and hospitality assets. For more information visit: https://www.townshipinc.com/.
About HFF
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.
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