LITTLETON, MA—Construction has begun in earnest on a new $49-million, 450,000-square-foot fulfillment center project for Potpourri Group Inc. on a nearly 52-acre parcel here.

The build-to-suit project is being developed by property owner MA Littleton Land, LLC, a joint venture between affiliates of Braintree, MA-based Condyne Investment Fund II, LLC and Square Mile Capital Management, LLC of New York City.

Potpourri, a multi-channel direct to consumer retailer based in Billerica, MA, is relocating warehouse operations in a facility totaling approximately 200,000 square feet in Whitinsville, MA to its new fulfillment center that is scheduled to be fully operational in the first half of 2016, according to Jeffrey O'Neill, managing partner of Condyne Investment. The project is financed by M&T Bank Corp.

The build-out of the facility at 3 Distribution Circle will cost $35 million for soft and hard construction costs, with the remaining $14 million earmarked for tenant improvements. The new building will include the addition of a 150-person call center, along with warehouse support and management functions. The automated facility will feature 400 automobile parking spaces, 18 shipping and receiving docks, 14 trailer staging bays, an emergency generator, and racked mezzanine pick levels. The building will be constructed of architectural insulated metal panel with glass storefront entry and conventional structural steel with energy-efficient lighting, Condyne officials say.

The property at one time was the site of storage facilities for a pre-stressed concrete manufacturing plant. Potpourri, which had conducted a national search for the fulfillment center, expects to create 130 new, full-time jobs and retain and relocate 227 of its existing employees. Condyne's O'Neill says that the project secured Tax Incremental Financing incentives from Littleton. The retailer sells 50,000 products in the areas of home décor, apparel, jewelry, gifts, toys, travel, and pet accessories categories. A groundbreakding ceremony for the project was held on June 5.

Greg Zais and Neil Ross of JLL Boston represented Potpourri, while Deborah Tamulis of Thomson Partners Boston represented Littleton Land, LLC, in the transaction.

Lynn Tokarczyk, government incentives consultant, led the Business Development Strategies, Inc. team in representing Potpourri in its efforts to secure local and state government incentives.

Potpourri's CEO, Jonathan Fleischmann says, “The new facility has been a 'long time coming', with the company weathering the recession, completing several acquisitions, and conducting national location studies prior to receiving board approval to move forward.”

Fleischmann adds, “The Potpourri management team is excited to be remaining in Massachusetts and finding a new home in Littleton in particular, retaining the 'institutional knowledge of its great workforce' and in gaining the capacity needed to continue on their growth strategy.”

Condyne and Square Mile Capital own a fully-leased multi-tenanted 485,000-square-foot building adjacent to the project site. At the entrance to the industrial park there is a building owned by Siba Technologies. Condyne and Square Mile Capital own a portfolio of approximately 1.5 million square feet of commercial space in Massachusetts, including properties in Taunton, Brockton and Fall River.

Commenting on the Potpourri transaction, Condyne's O'Neill says, “This is a great opportunity for the partnership to complete the master plan development of a first-class industrial park in the business-friendly community of Littleton. The Massachusetts industrial real estate market has great momentum as new fulfillment centers like Potpourri's are being developed to meet the demand of consumers.”