News release

Grand Logistics Center industrial project in Queens financed for $316M

JLL arranged the construction loan for the development of the multi-story distribution facility and secured the lease with an e-commerce tenant

December 09, 2020

NEW YORK, December 9, 2020 – JLL announced today that it has arranged a $316 million construction loan for the development of Grand Logistics Center, a 1.1-million-square-foot, state-of-the-art, multi-story distribution facility in the Queens community of Maspeth, New York, and secured the lease for the investment-grade e-commerce tenant.

JLL worked on behalf of the borrower, a partnership between LBA Logistics and RXR Realty, to place the loan. The anticipated project completion date is December 2022.

Situated at 55-15 Grand Ave., Grand Logistics Center is positioned at the crossroads of the Brooklyn Queens Expressway and Long Island Expressway. The building’s location provides access to Manhattan and the outer borough markets, making the tenant’s last-mile delivery strategy to service the 7.9 million residents within the New York City metropolitan area possible.

“With most of the major banks hitting pause during the pandemic, the construction loan market became challenging, but we were highly confident in the merits of the project despite the environment,” said Michael Maturo, President of RXR Realty. “We were fortunate to identify a lead bank and have multiple participants to fill out the syndication on a large loan with optimal terms in this market.

“The attention to the opportunity is an indication of the strength of the site, and the RXR/LBA sponsorship as well as the quality of the tenant,” he added. “It is a testament that the best-of-the-best projects are still achieving attractive capitalization structures.”

“After exploring multiple capitalization structures with alternative financing sources, we were pleased with the outcome of obtaining a traditional construction loan of this size in an efficient process,” said Tom Rutherford, LBA’s Principal of Finance.

The JLL Capital Markets team representing the borrower was led by Executive Managing Directors Kevin MacKenzie and Mike Tepedino and Managing Director Brian Torp.

The JLL Agency Leasing team that secured the lease for the ownership was led by Vice Chairman Robert Kossar and Executive Managing Director Leslie Lanne.

The COVID-19 pandemic and the shelter-in-place policies that ensued have accelerated e-commerce growth and the need for warehouse space across the nation. JLL anticipates e-commerce sales could hit $1.5 trillion by 2025, which would increase the demand for industrial real estate to an additional 1 billion square feet.

Grand Logistics Center is in the heart of New York City’s premier logistics submarket, Maspeth, which JLL Research details in its New York Industrial Insight - Q3 2020 report has a 1.8% vacancy rate, and the New York City industrial market, which, in particular, is experiencing an ever-growing reliance on e-commerce and food and beverage delivery may be buoyed from some of the economic fallout driven by COVID-19. As a result, JLL’s outlook on the market remains cautiously optimistic for both the short- and long-term growth prospects.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit

About LBA Logistics

LBA Logistics is a full-service real estate investment and management company with a diverse portfolio of industrial properties in major markets throughout the United States. LBA’s industrial portfolio currently totals over 60 million square feet and consists of state-of-the-art, high-bay distribution space, light manufacturing and multi-tenant business parks. LBA owns assets in major port and airport adjacent locations including Northern and South California, Seattle, Dallas, New York/New Jersey, Chicago, Florida and Atlanta as well as regional inland hubs and infill last-mile delivery locations. The foundation of the company is to create and execute customized value creation programs for its assets and to develop strong customer relationships.

About RXR Realty

RXR Realty is a New York-based, approximately 500-employee, vertically integrated real estate owner, operator, developer, and investment manager with significant experience in strategically investing through several market cycles and across various asset types throughout the New York region. RXR is comprised of members of the former senior management team of Reckson Associates (“Reckson”), a NYSE-listed REIT which was acquired by SL Green Realty Corporation in January 2007 for over $6.0 billion. RXR re-entered the New York City market in August of 2009.