As demand for industrial space persists, a 1.7 million-square-foot logistics center will rise on a South Jersey site that can reach 66 million consumers within a day’s truck drive with delivery slated for the third quarter of 2023.
CT Realty announced it acquired 282 acres of industrial land in Salem County’s Pennsville in a joint venture with PGIM Real Estate for the development of the Garden State Logistics Park.
According to CT Realty, development is already underway.
A joint venture of CT Realty and PGIM Real Estate will bring the two-building, 1.7-square-foot Garden State Logistics Park to Pennsville in South Jersey for an anticipated 2023 delivery. – CT REALTY
“This is an exceptionally rare opportunity to assemble a critical mass of land and create a top-flight logistics project in the second largest industrial market in the country,” said Rob Huthnance, who oversees CT’s development activity in the Eastern U.S. “This project is at the gateway to Southern New Jersey and will serve as a distribution hub for the entire Northeast.”
CBRE Vice Chairman Brian Fuimara handled the land sale. Financial terms of the transaction were not disclosed.
Located at the former Deepwater property next to the Delaware Memorial Bridge at Interstate 295, Garden State Logistics Park will be comprised of two buildings — measuring 1.2 million square feet and 512,442 square feet, respectively — with 40-foot clear heights and either cross-dock or front-loaded building configurations. CBRE will also represent the buildings for lease or sale through its New Jersey and Philadelphia offices, CT Realty said.
In 2021, the project was approved for a New Jersey PILOT (payment-in-lieu-of-taxes) agreement.
“In an ultra-tight industrial market marked by upward pressure on rents, the PILOT designation produces a meaningful cost savings for large tenants,” Huthnance added. “The ability to deliver this tax benefit in brand new building designs with cutting-edge functionality presents a compelling case for this project.”
PGIM Real Estate is the real estate investment and financing business of PGIM, the $1.5 trillion global asset management business of Newark-based Prudential Financial.