Developer plans $25M warehouse project in N.E. Philly near airport
Construction on the 103,000-square-foot warehouse could begin within weeks.
A developer plans to begin construction of a 103,000-square-foot warehouse within weeks on a mostly vacant property in Northeast Philadelphia, just across from the Northeast Philadelphia Airport.
Crow Holdings Development (CHD), of Montclair, N.J., says the $25 million project is part of a continued expansion of its Philadelphia footprint.
The nearly 10-acre Grant Avenue property is already zoned for industrial development. It is bordered by a Public Storage on one side and Muller Inc., a beverage wholesaler, on the other.
“Crow Holdings Development is having clear success developing industrial properties in Philadelphia,” Clark Machemer, senior managing director with CHD, said in an announcement of the purchase. “We are pleased to expand our footprint here with the acquisition of 2748 Grant Avenue.”
Machemer said in an interview that the location was chosen due to CHD’s historical success in Philadelphia and that the area has key logistical advantages.
Machemer said the Northeast Philly site offers an available workforce, closeness to the city for distribution, and a prime location near I-95, providing regional distribution opportunities.
The company believes that in urban areas like Philadelphia, smaller-footprint buildings — around 250,000 square feet or less — are the most effective without the high costs associated with larger, million-square-foot developments typically found farther from the city center.
Machemer said the Grant Avenue project, which has been in the works for 18 months, is ready to begin construction within weeks. It should take about nine months to build.
The company does not currently have a tenant, but Machemer expects it won’t be hard to find one once the warehouse is close to completion.
Much of the property facing Grant Avenue is wooded, and Machemer said most of the trees will be kept because the middle and rear of the property are open with a side road for access.
CHD purchased the property for $7 million from James D. Morrissey Inc. in July, followed by a $17.6 million construction loan in August, according to city records.
CHD plans to build a one-story structure with 32-foot ceilings, 32 docks, two drive-in bays, and parking for 65 vehicles. Oline Construction will serve as general contractor.
The company plans to utilize Philadelphia’s 10-year tax abatement program. Machemer said the company has worked with the city and state for months to obtain and required permits.
Johanna Chervak, CHD vice president, said the company anticipates “high demand” for the Class-A facility. “This building is exactly what the market is calling for.”
Company officials said the property’s purchase is part of its growing presence in Philadelphia.
CHD owns a nearby warehouse on Grant Avenue that is leased by Amazon.
In addition, it owns a still-under-construction, 147,000-square-foot facility at 14515 McNulty Rd., also in Northeast Philadelphia. Logistics coordinator Martin Brower has signed a lease for that property.
The company is also finishing a 294,000-square-foot building on River Road in Burlington Township.
Crow Holdings Development is the development arm of Crow Holdings, a privately owned real estate investment and development firm based in Dallas.