JLL’s Northeast Industrial Region has arranged the acquisition of a 85-acre development site and secured a tenant to lease the 1.2 million square feet distribution facility that will be constructed at 3379 Pocono Summit Rd., Mt Pocono, PA. JLL completed both transactions on behalf of Newland Capital Group, a national industrial investor, developer, and asset manager.
Located off of I-380 and I-80 on the eastern edge of the Northeast Pennsylvania Industrial Market, the site will be redeveloped as a 1.2 million square feet warehouse and distribution facility pre-leased to a major industrial tenant. The state-of-the art facility will feature 191 truck docks, four drive-in doors, 359 trailer stalls and parking for 426 vehicles.
The buyer was represented by JLL’s Northeast Industrial team, led by executive managing director Jeff Lockard, vice president Ryan Barros, and associate Kevin Lammers, who worked with Casey Mungo of DAUM Commercial to arrange the sale and negotiate the lease. JLL managing director Steve Cooper represented the seller.
“This is an ideal site offering access to the nation’s most densely populated region, with over 24 million people living in the NY–NJ–CT–PA Combined Statistical Area,” said Lockard. “Newland Capital Group will bring an exceptional new development to one of the most sought-after industrial submarkets in the country and we are delighted to be a part of this exciting new venture.”
Northeast Pennsylvania continues to be viewed as a core industrial market for occupiers and investors alike. In the past few years, companies including medical supplies distributor Medline Industries, General Mills, Lowe’s and NFI Logistics have built or leased millions of square feet of space, driving Northeast Pennsylvania’s industrial vacancy to record low levels.
According to JLL’s 2Q 2022 report covering the Eastern & Central Pennsylvania Industrial Market, Class A vacancy fell to a record low of 1.7 percent during the past year as asking rents climbed over 24 percent year-over-year to $7.93 psf. Despite elevated construction levels, more than one third of the 42.6 million square feet of new product currently under construction has been pre-leased.
“We are delighted to bring our expertise in the industrial market to a job-creating project that will contribute to the Poconos economy while providing vital logistics space at the heart of one of the world’s most densely populated markets,” said Ty Newland, managing principal, Newland Capital Group.
Construction of the new distribution center is expected to get underway October 1, 2022, with competition scheduled for 1Q 2024.