CT Realty, in joint venture with PGIM Real Estate, the real estate investment and financing business of PGIM, the $1.5 trillion global asset management business of Prudential Financial (NYSE: PRU) has acquired 282 acres of industrial land for the development of Garden State Logistics Park, a 1.7 million-square-foot state-of-the-art logistics center in Pennsville, NJ. Development is already underway on the site, with delivery of the project slated for the third quarter of 2023.
“This is an exceptionally rare opportunity to assemble a critical mass of land and create a top-flight logistics project in the second largest industrial market in the country,” said Rob Huthnance, who oversees CT’s development activity in the Eastern U.S. “This project is at the gateway to Southern New Jersey and will serve as a distribution hub for the entire Northeast, able to serve 66 million consumers in a single day’s truck drive.”
The land sale was represented by Brian Fuimara at CBRE, though the terms of the transaction are undisclosed. CBRE will also represent the buildings for lease or sale through its New Jersey and Philadelphia offices.
Garden State Logistics Park is located at the former Deepwater property next to the Delaware Memorial Bridge at I-295 in Pennsville, NJ, and is minutes from I-95 and access to the entire regional logistics transportation network. The project will include two modernized distribution buildings measuring 1,200,507 square feet and 512,442 square feet, with 40-foot clear heights and either cross-dock or front-loaded building configurations.
The project was approved for a New Jersey PILOT agreement (payment-in-lieu-of-taxes) in 2021, a tax incentive that spurs development and employment, and one that reduces the occupancy cost for new users. “In an ultra-tight industrial market marked by upward pressure on rents, the PILOT designation produces a meaningful cost savings for large tenants,” added Huthnance. “The ability to deliver this tax benefit in brand new building designs with cutting-edge functionality presents a compelling case for this project.”
Garden State Logistics Park represents yet another strategic acquisition in CT Realty’s national portfolio of 20 million square feet of Class A industrial buildings. CT will complete three buildings totaling 1.7 million square feet in Jacksonville, FL later this year, and just delivered two buildings in Mt. Comfort, IN, for just over 1 million square feet. The company also has 2 million square feet under development in Columbus, OH, part of a 5.5 million-square-foot logistics park and has another 1 million square feet under construction in Atlanta.