Thursday, October 23, 2014

Clarion/MRP Acquire 129-Acre Warehouse Distribution Site in Central PA

New York real estate investment manager Clarion Partners has once again teamed up with MRP Realty's industrial real estate affiliate to buy the former I-81/I-78 Logistics Park in Lebanon County, PA.

The new owners have renamed the planned two-building, 1,502,000-square-foot warehouse-distribution development Gateway Logistics Park. Located on a 129-acre site, the project includes development parcels for a 1,002,000-square-foot building and a smaller 500,000-square-foot center with pads in place.

Gateway Logistics Park is the third industrial real estate project the two companies have built and owned, including Fulling Mill Road in Harrisburg and Burlington Industrial Park in Burlington, NJ.

The two firms said they are focused on providing warehouse distribution faciltiies to support the growing trend among major retailers for direct-to-consumer fulfillment.

"With the market’s supply constraints we feel we are well positioned to capture build-to-suit opportunities or build spec inventory" with this property, said Andy Sitzer, senior vice president with Clarion Partners.

"Over the past 12 months, the Central Pennsylvania market has experienced nearly eight million square feet of new absorption, with a steady pipeline of new tenants entering the market," said D. Reid Townsend, principal with the Baltimore-based MRP Industrial.

Located where Interstates 81 and 78 merge east of Harrisburg, the property is within 30 miles of a new 300,000-square-foot FedEx distribution center at 111 Fulling Mill Rd. and a new UPS distribution hub.

Earlier this year, Pennsylvania approved the property's application for the Commonwealth’s Local Economic Revitalization Tax Assistance (LERTA) program, which offers partial real estate tax relief to future tenants during the initial 10 years of occupancy.

The property seller, I-81/I-78 Logistics Park, LLC, was a partnership between Panattoni Development Co. and the California State Teachers' Retirement System. Design and entitlements were led by Ware Malcomb Architects, Herbert Rowland & Grubic, Inc. and Advantage Engineering.

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