Bluewater Property Group (BPG), a Conshohocken-based industrial real estate developer, in partnership with PCCP, LLC, is well underway with construction of its 470,000 square foot, Class-A, speculative development warehouse in Humboldt Industrial Park. BPG broke ground in November 2019, and is working with RC Andersen as its General Contractor, M+H Architects as its Architect and Webster Bank as its Lender.
The fully-entitled project is located on a 50-acre parcel at 101 Commerce Drive in the Humboldt East section of the Park with immediate access to the I-81 interchange. The state-of-the-art facility will feature a 36’ clear height, precast construction, 185’ truck court, 101 dock doors, full building circulation, 54’ x 50’ column spacing with 60’ speed bays, LED lighting, ESFR sprinklers, and ample car and trailer parking. BPG expects the facility to be completed in the latter half of 2020.
BPG Associate Ryan Kelly said, “In recent years, Northeast PA has become an attractive value alternative for tenants relative to the Lehigh Valley because it still provides convenient access to the consumer populations in New York, Philadelphia and the Northeast Corridor, but with cheaper rents and a more attractive labor market. We like our project in particular because of the lack of local competing supply for cross-dock buildings in the half-a-million square foot size range.”
Kelly said the firm targeted the Greater Hazleton area for multiple reasons including immediate access to major transportation routes, low cost of doing business and a supportive local community.
“Hazleton has been a primary beneficiary of the recent secular changes in the logistics sector as evidenced by the increased activity from tenants, developers and institutional capital. On the entitlements side, the local municipalities have been cooperative and great to work with.”
When BPG was initially considering development options, Humboldt stood out because of the type of tenants already in the park.
“Humboldt is filled with tenants in industries with staying power – manufacturing, packaging, logistics, food and beverage – which is a major driver for the low vacancy in the park.”
Given Humboldt’s existing tenant base and BPG’s flexible site plan, Kelly said the firm will market to tenants across various uses including manufacturing, logistics and e-commerce. “We expect to see both existing tenants looking to expand and new users looking to establish a presence in the market. Whether we see interest from manufacturers, third-party logistics providers or e-commerce companies, our building design can accommodate any of these uses.”
In addition to the perks of Greater Hazleton and the Humboldt Industrial Park, Kelly said BPG received tremendous support from CAN DO since it first inquired about the site. “We worked closely with CAN DO throughout the sales process, particularly Executive Vice President Joe Lettiere, and they have been an excellent partner every step of the way. CAN DO has been helpful in providing local economic and labor data as well as getting us involved with the local business community in Hazleton.”
PCCP, LLC is a real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has $11.6 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco, Atlanta, and Los Angeles, PCCP has a 21-year track record of providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP underwrites the entire capital stack to exploit inefficiencies in the market and provide investors with attractive risk-adjusted returns. Since its inception in 1998, PCCP has managed, raised or invested over $23.1 billion of capital through a series of investment vehicles including private equity funds, separate accounts and joint ventures. PCCP continues to seek investment opportunities with experienced operators seeking fast and reliable capital. Learn more about PCCP at www.pccpllc.com.
About Bluewater Property Group
Bluewater Property Group was formed by a dedicated team of career industrial real estate practitioners with a deliberate focus on identifying and capitalizing on unique investment opportunities and advisory situations within the US industrial marketplace. Bluewater principals have extensive experience leading public, private and entrepreneurial entities focused on the domestic logistics sector and have, as part of a larger team of professionals, successfully developed, acquired, managed and sold in excess of $10 billion of value and 150 million sf of industrial assets over the past 20 years. Most recently, the founding principals of Bluewater were among the founding principals and senior management of KTR Capital Partners, a highly successful private equity fund platform sold to Prologis in May of 2015 for $5.9 billion. The Bluewater founding partners were instrumental in setting the investment, development, and asset management direction of the firm. Prior to KTR, the principals of Bluewater were part of the senior management team of Keystone Property Trust, a publicly traded REIT focused on industrial investment in the Northeast.