With NYC warehouse space scarce, Bronx industrial development is aiming higher and higher these days. A vertical construction project for Hunts Point’s Bronx Logistics Center — estimated to be completed in the second quarter of 2023 — is set to make the structure the borough’s largest multistory industrial building.
Two firms, Turnbridge Equities and affiliates of Dune Real Estate’s vertical integration will expand the center’s warehouse into a 32-foot towering structure totaling 1.3 million square feet with exclusive entrances for 585,000 square feet of warehouse space and 17 acres worth of fleet and auto parking.
Once completed, the structure is expected to surpass the 1 million-square-foot development of Innovo Property Group and Square Mile Capital Management LLC, also located near Westchester Creek. Project developers said their goal for the buildout was to explore innovation in the city’s long-relied vertical construction.
Vertical construction, as opposed to horizontal construction, includes civil structures with greater height than length. Only 1.6% of all warehouses in NYC are available for lease, according to real estate group JLL — and a diminishing number of warehouse space has prompted city officials and developers to build up rather than out for new industrial space.
Turnbridge acquired five industrial parcels to assemble the site starting in 2018 for a total of $174 million, and landed $381 million in construction financing, The Real Deal reported.
In addition to its height and accessibility, the structure will stand out amongst the nearby Bronx building stock, which is around 60-100 years old. Project developers point to the limitations of the borough’s mid-century warehouses which have low ceiling heights of 15-16 feet and poor column placement that make it difficult to maneuver large trucks.
The new facility will have 32-foot ceiling heights, wide column spacing and four freight elevators.
“We are thrilled to kick off vertical construction and introduce Bronx Logistics Center to the market,” said Ryan Nelson, managing principal at Turnbridge. “Our goal at the onset of the project was to create an industrial development that would set a new standard for the city in terms of accessibility, building specifications, and scale. One can appreciate how unique this offering is within a New York City industrial market that is sub-two percent vacant and comprised of an existing industrial stock that is over 60 years old and functionally obsolete by modern logistics standards.”
Multistory warehouses can cost up to 40% more to build than single-story facilities with comparable space. The foundation and structural system of a multistory facility must be engineered to bear the additional weight of trucks picking up loads from industrial space on multiple floors, each with high ceilings and loading docks.
The Bronx Logistics Center is located a mile from one of the nation’s largest food markets, the Hunts Point Food Distribution Center, where more than 155 wholesalers sell $3 billion worth of meat, fish and produce annually.
“Bronx Logistics Center is delivering to the market as the industrial sector in general, and last-mile in particular, continue to experience unprecedented pressure from undersupply. With record-breaking demand for last-touch, speed-to-market logistics, we are seeing strong interest for this best-in-class facility,” Leslie Lanne, JLL’s executive managing director. “The unparalleled combination of scale and proximity to New York City’s consumers will differentiate Bronx Logistics Center from its already limited competition.”
Reach Robbie Sequeira at rsequeira@schnepsmedia.com or (718) 260-4599. For more coverage, follow us on Twitter, Facebook and Instagram @bronxtimes
