Friday, December 5, 2014

Subaru picks Camden for new HQ



Subaru of America Inc. has settled on building a new North American headquarters at the Campbell Gateway District in Camden, N.J.


The company will potentially receive upwards of $100 million from the New Jersey Economic Development Authority through its Grow N.J. program that offers huge financial incentives to firms that locate in Camden and grow jobs there.

The addition of Subaru to the Gateway District is the first of what is expected to be a handful of other companies and headquarters to locate on that evolving corporate campus and use taxpayer subsidies to help them.

It took Subaru a while to settle on Camden. After roughly three years of looking at both the New Jersey and Philadelphia sides of the Delaware River, Subaru said Friday that it will construct a 250,000-square-foot building at the Campbell Gateway District.

This is a 45-acre area in which Campbell Soup Co., which is based in Camden, is master developer. Brandywine Realty Trust was appointed in October by the soup company to be the developer. Brandywine is a Radnor, Pa., real estate investment trust that owns and builds office and mixed-use developments.

Subaru will have 500 employees working from the new facility and the project is expected to be completed by late 2016 or early 2017.

In a statement, Thomas J. Doll, president and chief operating officer of Subaru of America said: "We are very excited to be moving this project forward as we seek to bring all of our corporate employees together on one site, in a first-class facility. This move cements the long-term future of Subaru in the Delaware Valley and we are pleased that after more than 45 years here, we can plan to continue to be a part of the local community we have supported for so long."

The car company has maintained its headquarters in New Jersey since 1969 and moved into its current national headquarters at 2235 W. Marlton Pike in Cherry Hill, N.J. in 1986. The seven-story building cost $18 million to construct and totals 115,000 square feet. About 300 Subaru employees work there.

The company's footprint goes beyond Cherry Hill. It also has an operations center in a 59,000-square-foot building in Pennsauken, N.J., where it has about 200 employees from its customer loyalty, government relations, parts, service, financial services and other departments. It also has a regional office and warehouse in Westampton, N.J.

The company recently built a mega distribution center and training facility. The 526,050 square-foot building is at NFI Park at Florence Crossings at 2020 Route 130 N. in Florence, N.J. It's a short distance from the New Jersey Turnpike and Pennsylvania Turnpike extension.

The addition of Subaru to the Gateway District is a significant milestone in its development. Campbell's has spent nine years assembling land, getting approvals, drawing up concepts and even spending $130 million on its own headquarters to make it viable. Upwards of a million square feet of office space can be developed on the 45 acres.

The project underscores the company's commitment to Camden, where it has been for the last 140 years, as well as to its employees who work there, said Rich Landers, vice president of tax and real estate at Campbell's.

Campbell's will not get a profit from its development work but will recoup its costs associated with it, Landers said.

"This is another opportunity to give back to the city of Camden and from a business perspective, this is a good investment for us," he said.

Campbell's is "thrilled" to have Subaru as an eventual corporate neighbor. Landers said he expects five to six other "high-quality corporate headquarters" to strike deals to also move in next door over the next four years.

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