Sunday, November 15, 2015

Construction begins on 475,000-square-foot logistics center off Route 33



With a new interchange comes fresh opportunities for industrial market growth in neighboring communities.

One case in point is the start of construction on a 475,000-square-foot speculative development in Forks Township, a project officials say was largely viable because of the opening of the Charles Chrin Route 33 interchange in nearby Palmer Township in June.


The road project opened a new connection to Route 33 and Interstate 78 and has started yielding growth for new industrial properties in surrounding communities that offer easier access to these routes.

The project, LogistiCenter at 33, will be at 4200 E. Braden Blvd. in the Forks Business Center, not far from corporate neighbors in Forks Township that include Victaulic, Follett Corp. and Crayola.

Dermody Properties, an industrial development and operating company in Reno, Nev., and PCCP LLC, a real estate finance and investment management firm with offices in New York and California, are partnering to develop the site. Both companies hosted a groundbreaking event Thursday.

“The interchange makes it easier to get here,” said James Mascaro, senior vice president of development for Dermody Properties. “I know that the work ethic here is good.”

Gene Preston, partner for the east region of Dermody Properties, said the Pennsylvania market is a strong attraction for this type of development.

“We just think it’s an economy that’s well-balanced; we think it’s going to do well in the long haul,” Preston said. “We have no doubt we’ll be attracting a world-class tenant or two.”

The building, which would be about 10 acres under roof, could have one or two tenants. It is designed to have 36-foot clear ceiling heights, which Preston said is the standard for modern industrial properties, making it suitable for traditional warehouse use but also e-commerce. Other features include 226 car parking spaces, 85 trailer parking spaces and 64 loading docks.

Officials from PCCP also see the potential to develop a Class-A industrial property that will attract strong interest.

“I can confidently say this is an exceptional place to develop real estate,” said Melanie Gangel, vice president of PCCP. “We don’t expect it to be long before some lucky business call this its new home.”

With this project, PCCP has 2.1 million square feet of industrial projects in eastern Pennsylvania.

Construction will begin in three weeks and should be finished by the end of the second quarter of 2016, Mascaro said.

Preston declined to provide an estimated construction cost.

Dermody Properties is the industrial developer and operating partner, and PCCP is the financial partner on the project.

Dermody Properties hired R.S. Mowery & Sons of Mechanicsburg, as construction manager. The architectural firm is Randall-Paulson Architects Inc. of Roswell, Ga.

Jones Lang LaSalle, which has an office in the Lehigh Valley, is the leasing team for the property. HFF (Holliday Fenoglio Fowler LP), based in Florham Park, N.J., served as the broker that represented J.G. Petrucci and Co. in the sale of the property to Dermody and PCCP, Preston said.

Dermody Properties also owns an industrial site available for lease in the 323-acre Berks Park 78 industrial park, off Interstate 78 in Bethel Township. The 750,000-square-foot building is built for distribution or e-commerce operations and is next to the Dollar General and PetSmart warehouse/distribution centers.

In Pennsylvania, Dermody Properties also has two industrial properties in Carlisle and one under construction in Union Township near the Interstate 78/Interstate 81 intersection, Preston said.

Source: LVB

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