CT Realty, PGIM to Build 1.7 MSF Logistics Park

Garden State Logistics Park. Image courtesy of CT Realty

CT Realty has teamed up with PGIM Real Estate to acquire a 282-acre project site in Pennsville, N.J., from D2 Organization. Work is already underway on Garden State Logistics Park, a two-building business park totaling 1.7 million square feet on the sprawling metro Philadelphia lot, along the Delaware River.

CBRE facilitated the transaction and will also market the development. The industrial park is slated to come online in the third quarter of 2023.

In March 2021, The New Jersey Department of Environmental Protection approved a permit for the remediation and redevelopment of the site, formerly home to a coal-fired power plant operated by Calpine. The site presented other challenges as well, such as the presence of Atlantic City Electric’s substation, along with transmission lines and the existing wetlands that need to be protected.

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In the same year, the seller negotiated a New Jersey Payment in Lieu of Taxes (PILOT) agreement, potentially lowering occupancy costs for future tenants.

Metro Philadelphia closed the first quarter of 2022 with a 7.0 percent industrial vacancy rate, 200 basis points higher than the national average, according to CommercialEdge data. The metro also had more than 13.3 million square feet of industrial space underway, representing 3.3 percent of the total stock, with an additional 12.5 percent of the overall inventory in the planning and permitting stages.

Project details

Garden State Logistics Park will take shape at 373 N. Broadway and will include a 1.2 million-square-foot logistics center as well as a distribution building totaling 512,442 square feet. Both structures will have 40-foot clear heights, while the building configurations will either be cross-dock or front-load.

The business park will offer easy access to Interstate 295, while New Castle Airport will be less than 8 miles away. Downtown Philadelphia will be 35 miles northeast of Garden State Logistics Park. Based on the press release, the development will provide access to a population of more than 66 million people within a day’s truck drive.