HARRISBURG, Pa., Nov. 15, 2016 (GLOBE NEWSWIRE) -- Ridge Development, the industrial development arm of Transwestern Development Co., today announces it is under contract to purchase 160 acres in Penn Township, Pennsylvania, to develop and build the Penn Commerce Logistics Center, a planned 2.2 million-square-foot, Class A warehouse project. The Penn Commerce project kicks off Ridge Development’s foray into the Northeast, which will be led by newly hired Senior Vice President Paul Pontius, who will be located at the new Ridge office in Harrisburg.
“As a severely underserved market, Central Pennsylvania is an ideal location for Ridge to develop state-of-the-art warehouse space and establish a permanent presence in the Northeast,” said Steve Kros, executive vice president at Ridge Development. “Paul’s impressive track record and knowledge of the region make him a valuable asset for Ridge and our clients. We look forward to the expertise he will add as we move forward with Penn Commerce Logistics Center.”
Ridge Development will close on the 160-acre site at Exit 37 on Interstate 81 in September 2017 and immediately begin construction on a 1.4 million-square-foot speculative warehouse. The first building is scheduled to deliver in 2018, with full completion of the project slated for 2020.
Offering excellent interstate access, Penn Commerce Logistics Center will be located 7 miles from the largest concentration of bulk warehouse space in Central Pennsylvania. The project will feature the largest floorplate, at 1.45 million square feet, of any development within 30 miles of Harrisburg. The cross dock buildings will range from 36- to 40-foot clear heights and will have state-of-the-art features for dock loading, truck court depth and trailer parking.
At mid-year, the Newville submarket, where Penn Commerce Logistics Center will be located, had 2.57 million square feet of existing warehouse space with 0 percent vacancy, compared to nearby Carlisle, which had 18.2 million square feet of existing warehouse space with 7.0 percent vacancy. Carlisle had 2.35 million square feet under construction and has averaged 2.26 million square feet of absorption annually.
“Central Pennsylvania is within a one-day drive of 40 percent of the U.S. population, making it an extremely desirable location for distribution centers and e-commerce facilities,” said Pontius. “Specifically, the Carlisle submarket has the largest concentration of big-box industrial in Central Pennsylvania, but it is expected to be completely built out and absorbed before Penn Commerce Logistics Center delivers. The tight market in Carlisle primes Newville, a mere 7 miles away, for high demand for the foreseeable future.”
Pontius joins Ridge Development most recently from JLL, where he served as executive vice president of industrial services in the Philadelphia region. During his 15-year industrial real estate investment career, he has sourced more than 10 million square feet of development and acquisition opportunities.
Pontius will work closely with Kros, who oversees all Ridge Development projects along the East Coast. Currently, the firm has 672,000 square feet of industrial projects underway in Florida. This includes Lakeland Logistics Center in Lakeland, which consists of 490,000 square feet of distribution space, and Airport North Logistics Center in Medley, which consists of 182,057 square feet of distribution space that was delivered in October 2016. Ridge also has active projects in various stages of development throughout the East Coast, Midwest, Texas and California.
Cushman & Wakefield is providing leasing services for Penn Commerce Logistics Center.
ABOUT RIDGE DEVELOPMENT
Ridge Development, the industrial arm of Transwestern Development Company, is a leading provider of corporate real estate development and investment in state-of-the-art warehouse, distribution and manufacturing facilities throughout North America. Ridge’s principals have been involved in the development, construction, ownership and management of more than 125 million square feet of institutional quality real estate and have an average 25 years of experience in the real estate industry. Ridge is based in Chicago, with regional offices across the U.S. in Los Angeles, Dallas, Atlanta and Houston.