"Key Logistics Park is strategically located along the heaviest traveled distribution route in Pennsylvania," says Kevin Wade, VP of office and industrial development for Lauth's Northeast region, in a news release. "This site offers the ability to distribute to 40 million people within a four-and-a-half-hour drive and the flexibility to meet large distributor's needs in any configuration desired."


Wade

Lauth had been exploring options in the corridor for "a couple of years" before purchasing the Key Logistics project from Kennett Square, PA-based Key Development last year for an undisclosed sum, says the spokesman. In Oct. 2006, Key Development had revealed plans for Key Logistics Park, to be marketed by a team from the King of Prussia office of Grubb & Ellis.

The Lauth spokesman adds, "Given the area's strategic location and proximity to 40 million people in a half day's drive, we believe this region will continue to serve as a prime East Coast distribution hub." As GlobeSt.com reported last month, Matrix Development Group plans to double the size of its one-million-sf, single-tenant Matrix Business Park in Greencastle, further west along the I-81 corridor.

"Interstate 81 is becoming a very popular alternative to I-95, given I-95's congestion issues around Maryland and Washington, DC," Patrick Connelly, VP of asset management at Matrix, told GlobeSt.com last month. "Route 81, which is a non-toll road, gives access to companies trying to get up and down the East Coast and also intersects with many east-west roadways to the north."

Construction on the first building at Key Logistics, a 1.2-million, cross-docked, bulk distribution facility, is expected to be completed by May 2009. The building will feature more than 120 dock doors, 32-foot clear height and space to park up to 280 trailers, according to the news release.

Building two will be 909,000 sf, while building three will measure 954,000 sf. Construction on both buildings will be based on market activity or on a build-to-suit basis, according to the release.

The Lauth spokesman confirms that the first building is attracting prospective tenants, although he declines to name any of them. "There is considerable interest in Building One, but we are not in a position to discuss specifics yet," he tells GlobeSt.com.

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
NOT FOR REPRINT

© 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.

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

National