Turnbridge Finds New JV Partner; Secures $105 Million Loan for Bronx Logistics Center
Real Estate In-Depth | September 9, 2020
NEW YORK— Turnbridge Equities reported on Sept. 8 it had entered into a new joint venture with affiliates of Dune Real Estate Partners LP to own and develop the five-parcel assemblage for the future Bronx Logistics Center. The joint venture has secured $105 million in predevelopment financing for the project to be developed in the Hunts Point section of the Bronx from J.P. Morgan.
New York City-based Turnbridge completed the five-property assemblage in a series of off-market transactions beginning in 2018. Turnbridge announced in March, that it completed the 14.2-acre assemblage and planned to build the four-story, 1.24-million-square-foot Class-A, Bronx Logistics Center at the site.
The New York City-based firm stated in March the last-mile distribution facility will offer direct tractor-trailer ramp access to three levels, van access to the fourth level, 1,400 parking spaces and a rail spur giving tenants an option to connect to CSX Transportation freight lines at the nearby Oak Point Rail Yards.
“We believe strongly in this one-of-a-kind asset and the Bronx industrial market,” said Ryan Nelson, managing principal, Turnbridge. “There is enormous tenant demand for quality, last mile distribution space in this supply-constrained region. The innovative design and unbeatable location of the Bronx Logistics Center is poised to capitalize on the surging e-commerce trade in this area and growing consumer demand for faster and more convenient deliveries.”
“Turnbridge is pleased to complete our recapitalization of the Bronx Logistics Center development and excited to announce our new strategic venture with top-tier investment firm Dune,” adds Andrew Joblon, managing principal and founder of Turnbridge. “The successful track record of Turnbridge and Dune, combined with our shared investment philosophy and capital flexibility, creates a formidable partnership. We look forward to jointly completing this world-class last-mile distribution facility.”
Turnbridge states that the Bronx Logistics Center is perfectly positioned for a last mile logistics facility, given its close proximity to the region’s major transit arteries, I-95, I-87 and I-278, affording access to more than 17 million consumers within a 30-minute drive.
The distribution facility, which is located in an Opportunity Zone, will be the largest multi-story distribution facility in the region and the only one that provides a rail transport option. Bronx Logistics Center will also include electric charging stations, dedicated car-pool areas, and an extensive rooftop solar panel system.
Earlier this year, Turnbridge estimated that the Bronx Logistics Center would be operational in 2022.
According to its plan released in March, Bronx Logistics Center will offer market-leading access, with levels one through three each containing dedicated drive-in access ramps for trucks and 17 dock doors per floor. The top level will be accessed by 14 drive-in ramps for vans and automobiles. Floor plates will average 250,000 square feet, with clear heights of 24 feet to 28 feet throughout. The layout and abundant loading doors and parking will permit one or more tenants per floor, each with dedicated loading areas. A combination of surface, structured and rooftop parking will accommodate more than 1,400 vehicles.
“We are excited for our joint venture with Turnbridge, a partner with a proven track record within New York City’s logistics market,” said Daniel M. Neidich, CEO of Dune. “Bronx Logistics Center is well-positioned to capture accelerating tenant and investor demand for urban infill industrial assets within the significantly supply-constrained New York City region.”
Turnbridge Equities, founded in 2015 by Joblon, is a privately-held, vertically-integrated real estate investment and development firm with offices in New York, Los Angeles, Washington, DC, Miami, and Austin. Turnbridge is an SEC registered investment advisor, (Turnbridge RE Fund Management Company I LLC) with assets under management in excess of $1.7 billion.
Dune Real Estate Partners is a New York City-based real estate investment firm that manages the Dune Real Estate Funds, which were launched by Daniel M. Neidich in 2005 and have raised approximately $4 billion of equity capital to date. Dune invests on behalf of pension funds, sovereign wealth funds, endowments and other large institutions and individuals.