Wednesday, May 20, 2026

DrinkPak begins construction on massive East Coast manufacturing facility in South Philadelphia

By Margaret Sutherland

After signing the region's largest industrial lease since 2020 and one of the biggest industrial lease deals ever recorded in the Philadelphia market, California-based canned beverage maker DrinkPak has started construction on its new East Coast manufacturing facility spanning 1.4 million square feet.

The build-to-suit facility for the largest canned beverage contract manufacturer in North America will anchor the Bellwether District, a 1,300-acre commercial redevelopment project on a former refinery site in southwest Philadelphia.

Chicago-based real estate developer HRP Group, formerly Hilco Redevelopment Partners, bought the site located along the Schuylkill River near Interstates 95 and 76 out of bankruptcy in 2020 and rebranded it as the Bellwether District, a large master-planned industrial campus positioned to attract logistics and advanced manufacturing users.

The waterfront site provides access to the Port of Philadelphia and I-95, providing shipping connections to DrinkPak's brand customers in the Northeast, Mid-Atlantic and upper Midwest regions. The company's clients include such popular beverages as White Claw, High Noon, Monster Energy and Celsius.

DrinkPak plans to invest at least $195 million in the new facility, with the opening planned in 2027. The Philadelphia plant will join its two other U.S. locations, both also 1.4 million-square-foot facilities, one in the beverage firm's home city of Santa Clarita, California, and another in Fort Worth, Texas.

The large-scale beverage production and packaging plant will feature modern manufacturing operations to can energy drinks, sodas, teas, juices, waters, protein beverages, seltzers, beer, wine and spirits in a wide range of can sizes and packaging formats. The new plant will hum with four high-speed filling lines, each capable of producing up to 3,000 cans per minute. The facility will also include an automated variety repacking line to produce multi-flavor cartons and trays at speeds up to 2,000 cans per minute.

Additional building features include a 15,000-square-foot 40°F cooler, a 22,000-square-foot office and 40’ clear height. The facility shell will pursue Leed® Silver certification.

Arco National Construction is partnering with its repeat client to construct the beverage manufacturing facility. Arco also built DrinkPak's 1.4-million-square-foot facility in Fort Worth, Texas.

www.omegare.com

Wednesday, May 13, 2026

Prologis sells Tastykake's headquarters in Philadelphia

 By Jonathan Lehrfeld CoStar News

The Philadelphia headquarters and central production plant of snack maker Tastykake has been offloaded in a deal that comes as the market's industrial real estate sector shows signs of improvement.

San Francisco-based Prologis sold the South Philly facility at 4300 S. 26th St., the real estate investment trust confirmed with CoStar News via email. Prologis did not comment further on the deal.

An affiliate of Salt Lake City-based Bridge Investment Group bought the nearly 346,000-square-foot complex last month for $87 million, according to a city property record and CoStar data. Bridge did not respond to email and phone requests for comment.

Plans for the main hub of Tastykake — known for its creme-filled cupcakes and other pastries — remain to be seen. Neither the baked good group nor its Georgia-based parent company, Flowers Foods, immediately responded to a request to comment from CoStar News.

The Tastykake transaction "reflected premium pricing for infill industrial assets with strong functional utility, strategic access to regional transportation networks, and long‑term relevance for distribution or manufacturing users," CoStar wrote in its latest Philadelphia industrial report.

The deal also underscores how Philadelphia's industrial market "has found its footing in early 2026 after a historically weak 2025, when demand fell to levels not seen in decades."

The cross-dock manufacturing and distribution facility was constructed in 2009 as a build-to-suit for Tastykake. The company had nearly 10 years remaining on its 26-year lease when JLL began marketing the property for sale in the fall.

Founded as Tasty Baking Co. in 1914, the company announced in 2010 it was selling its former bakery property, corporate offices and distribution center in Philadelphia for $6 million in connection with its relocation to its current address. It then merged with Flowers Foods in 2011.

Prologis acquired the building in 2020 through its merger with Liberty Property Trust.

www.omegare.com