CT Realty, PGIM Real Estate Buy South Jersey Site for Logistics Center
Work on 1.7 Million-Square-Foot Development Begins
Another large industrial site is in the works for New Jersey, with CT Realty and PGIM Real Estate acquiring 282 acres to develop the Garden State Logistics Park, a 1.7 million-square-foot center in Pennsville at the foot of the Delaware Memorial Bridge.
Work on the project is already underway and is slated to be completed in the third quarter 2023. The development will include two distribution buildings measuring at 1.2 million and 512,400 square feet with 40-foot clear heights.
Terms of the land acquisition weren’t disclosed.
“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,” Rob Huthnance, who oversees CT Realty’s development activity in the eastern United States, said in a statement. “This project is at the gateway to southern New Jersey and will serve as a distribution hub for the entire Northeast, able to serve 66 million consumers in a single-day’s truck drive.”
The demand for industrial properties has surged nationally, particularly with the rise of online shopping spurred during the height of the pandemic. And the Garden State has been extremely popular for distribution centers because of its location in a densely populated area and its proximity to major airports and seaports.
Garden State Logistics Park is another strategic acquisition in Newport Beach, California-based CT Realty’s national portfolio of 20 million square feet of Class A industrial buildings. The company will complete three buildings totaling 1.7 million square feet in Jacksonville, Florida, later this year and just completed two buildings in Mount Comfort, Indiana, for just over 1 million square feet. The firm also has 2 million square feet under development in Columbus, Ohio, part of a 5.5 million-square-foot logistics park and has another 1 million square feet under construction in Atlanta.
The Pennsville project was approved for a New Jersey payment-in-lieu-of-taxes, or PILOT, agreement in 2021, a tax incentive that spurs development and employment as well as reduces the occupancy cost for new users.
“In an ultra-tight industrial market marked by upward pressure on rents, the PILOT designation produces a meaningful cost savings for large tenants,” Huthnance said. “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 Prudential Financial.
For The Record
The land sale was represented by Brian Fuimara at CBRE. The brokerage will also represent the buildings for lease or sale through its New Jersey and Philadelphia offices