D2 Organization Plans 3 Philadelphia-Area Warehouses

Salem Commerce Park. Image courtesy of D2 Organization

D2 Organization plans to build three Class A warehouse buildings totaling 586,000 square feet at the renamed Salem Commerce Park in Carneys Point, N.J. The Philadelphia-based investment group has recently acquired the 48-acre development site, an assemblage of four parcels, from the Delaware River & Bay Authority. American Dream Realty represented the buyer.

The site consists of three vacant parcels—3, 4 and 7 Collins Drive—at the former Salem Business Center, totaling 35 acres, together with an adjacent 10-acre lot at 1 Collins Drive and a neighboring 3-acre residential outparcel. The seller of the residential property was not disclosed.

BridgeInvest of Miami provided $16.1 million in acquisition and predevelopment costs financing. The debt was arranged by D2 Capital Advisors.

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Salem Commerce Park is immediately off Exit 4 at the Interstate 295 and Highway 48 interchange, 3 miles from the I-295 and New Jersey Turnpike interchange and 4 miles from the Delaware Memorial Bridge, making it a prime logistics location to fulfill Philadelphia, Southern New Jersey and Delaware markets. The site also provides easy access to New York City, Baltimore and Washington, D.C.

And D2 has more in store for the area. The firm is acquiring vacant land north of I-295 alongside Golfwood Avenue, according to Philadelphia Business Journal, with plans to build a 587,500-square-foot warehouse. Upon completion, the four new buildings would add nearly 1.2 million square feet of logistics space to South Jersey’s inventory.

Salem County rents for Class A industrial space has more than doubled since 2019 from approximately $5 per square foot to more than $11 per square foot, according to D2. The Southern New Jersey/Eastern Pennsylvania area has become the second largest big-box region in North America, with approximately 500 million square feet of total industrial inventory. Tenant demand remains strong with an overall vacancy of less than 2 percent in New Jersey.

Earlier deals

D2 Organization is a privately owned opportunistic investment group focused on acquiring and repositioning land for new development, including raw land, brownfields and excess or obsolete industrial facilities. Since 2019, D2 has successfully entitled more than 2.7 million square feet of industrial development projects in Salem County, N.J.

In May 2022, D2 sold a 282-acre project site in Pennsville, N.J., to CT Realty and PGIM Real Estate. Work is underway at Garden State Logistics Park, a two-building campus totaling 1.7 million square feet that is slated to come online in the third quarter.

The previous year, in October, D2 sold a 149-acre site in New Castle County, Del., to Logistics Property Co. Long planned as an industrial park, the 1.1 million-square-foot logistics campus is under construction on the metropolitan Wilmington, Del., area site, with completion expected in the second quarter of this year.