Maspeth Industrial Property Secured $39.4 Million Loan
Sitex Group obtained new financing for an industrial outdoor storage site in Queens leased by the city fire department.
Updated on Oct. 14, 2026 in Commercial
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Lake Forest Bank and Trust Company provided a $39.4 million refinancing loan for an industrial outdoor storage facility located at 58-80 Borden Avenue in Maspeth. The 146,583-square-foot property serves as a long-term asset featuring a 20-year lease held by the New York City Fire Department.
Why it matters
Securing this financing highlights ongoing investor interest in specialized industrial outdoor storage space within the outer boroughs, which maintains a stable vacancy rate despite new construction in the sector. This refinancing allows the owner to stabilize capital costs on a property originally purchased for $50 million in late 2021.
The loan covers a 146,583-square-foot site where the New York City Fire Department currently holds a 20-year lease. This segment of the market operates amid an outer borough industrial vacancy rate of 6.3 percent and average Class A industrial rents of $35.23 per square foot.
The players
Sitex Group
An industrial real estate investor that manages and operates outdoor storage properties.
Lake Forest Bank and Trust Company
A financial institution providing commercial lending services for real estate development.
New York City Fire Department
The city agency responsible for fire protection that acts as a long-term commercial tenant.
JLL
A global commercial real estate services firm that negotiates debt and equity for property owners.
The details
JLL facilitated the debt arrangement for the Maspeth property, which includes 26,619 square feet of existing building space. The refinancing leverages the site's utility for industrial outdoor storage, a sub-sector that has seen growth alongside 802,409 square feet of industrial space currently under construction in the outer boroughs. The long-term lease agreement with the city fire department, signed in February 2023, provides a stable, multi-year revenue stream that supports the property's valuation.
Timeline
Sitex Group acquired the industrial site in late 2021.
The New York City Fire Department signed its 20-year lease in February 2023.
JLL released current market data during the second quarter of 2026.
Money Landscape
This transaction follows the valuation benchmarks established by the New York City outer borough industrial market Q2 2026 data. It illustrates the ongoing demand for specialized industrial sites in an environment where average rents are currently $35.23 per square foot.
Property owners and investors in the industrial sector should note how long-term government leases can stabilize financing terms for specialized sites. Consult with a qualified financial professional to understand how shifting interest rates and vacancy trends in outer boroughs may impact commercial assets.
The takeaway
Commercial real estate owners often use credit-worthy public sector tenants to anchor property financing. Keep an eye on local industrial vacancy rates and rental averages to better understand the broader demand for outdoor storage facilities in your neighborhood.
Further reading
For more on local market trends, visit the Commercial section.
Source note: This article includes information reported by Commercial Observer.
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