(To read more on the industrial market, click here.)
TOBYHANNA, PA-The majority, nearly three million sf, of distribution/warehouse capacity in the 600-acre Arcadia North Business Park is spoken for. The park has capacity for approximately 3.5 million sf, and St. Louis-based Clayco Realty Group has broken ground for a 1.4-million-sf build-to-suit, which is leased long term to Johnson & Johnson Sales and Logistics Co. LLC.
Bethlehem-based Arcadia Properties LLC sold 100 acres to Clayco for an undisclosed price. The completed project is valued at $100 million, according to a statement from Arcadia. The tenant is the logistics arm of the Brunswick, NJ-based Johnson & Johnson pharmaceutical firm. David Moses, EVP and partner of Clayco, confirms the value and says the plan allows for an additional 200,000 sf. He tells GlobeSt.com the building is 50% complete and expected to open by year-end.
Robert Boehning, Arcadia's VP of administration and marketing, tells GlobeSt.com that his company, in joint venture with the Lehigh Valley division of Chicago-based Higgins Development Partners, plans to break ground this fall for a 1.2-million-sf spec distribution center, which is expandable to 1.4 million sf.
It will be located on the lot next to the J&J facility. Boehning says it represents a capital investment of between $40 million and $50 million. Designed for single-tenant occupancy, it will be offered for lease or sale at pricing that has not yet been established.
Regarding the remaining acreage in the park, Boehning says, "The largest building will be a 320,000-sf facility, either spec or build-to-suit. The rest will be smaller buildings, from 17,000 sf to 80,000 sf, to fill in all the park's nooks and crannies."
The state provided a package of nearly $9.8 million in loans and grants from its Business in Our Sites program for infrastructure development of the Arcadia North park. The package consisted of nearly $6.9 million in low-interest loans and a grant of almost $2.9 million.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
