MINNEAPOLIS—The Opus Group has launched yet another major project in the Twin Cities region, this time a build-to-suit contract with AmerisourceBergen to develop and construct a new distribution center within Valley Park Business Center in suburban Shakopee. Opus acquired the land in 2013 and has already built a 200,000 square-foot spec building on the site.
“We had some large users that approached us for space,” Phil Cattanach, director, real estate development, Opus Development Co., LLC, tells GlobeSt.com, one of which was AmerisourceBergen, a global pharmaceutical firm with dozens of distribution centers in the US. “It was just the type of user that we were looking to bring into the park.”
However, the Chesterbrook, PA-based company “required a less traditional shape,” and a build-to-suit was more fitting than a generic speculative structure. Furthermore, another big selling point for AmerisourceBergen was that it will have the ability to expand this new Shakopee building if the need arises. The building will include warehouse space and two stories of office space. The distributor did not want to publicize building's eventual size.
“AmerisourceBergen's expanding distribution capabilities in Minnesota will allow us to better serve our customers by continuing to improve product access, increasing supply chain efficiency and enhancing patient care,” says Chuck Ball, senior vice president of distribution services at AmerisourceBergen.
Construction will begin this July with scheduled completion in 18 to 24 months. Opus Development Co., LLC will be the developer, Opus Design Build, LLC will be the design-builder and Opus AE Group, LLC will be the architect and engineer of record.
Opus' recent portfolio of work includes 6.8 million square feet of industrial space currently in its pipeline or completed in the past 16 months across the US. Demand has gotten so robust that the company has felt comfortable launching projects in secondary markets. As reported in GlobeSt.com, for example, it just launched two specs in the suburbs of Des Moines, IA.
And Cattanach points out that the Twin Cities region has seen 18 or 19 consecutive quarters of positive absorption. He expects the market for development will remain healthy for some time to come, especially for buildings with 32' clear ceiling heights. “There is not a lot of contiguous space still available in the market.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
