Jonestown, PA., May 12, 2016 – Responding to continuing Class A bulk warehouse space demand in the healthy Central Pennsylvania industrial market, Ridgeline Property Group (RPG) has broken ground on a 398,250-square-foot industrial speculative building in Jonestown, Pa. American Realty Advisors and RPG have created a joint venture to develop Crossroads Logistics Center, which will be built on a 35-acre site providing immediate access to Interstate 81.
Crossroads Logistics Center is anticipated to be completed in December 2016. Jake Terkanian, Joe McDermott and Vince Ranalli of CBRE’s Philadelphia office have been selected to market the property for lease.
“With strong absorption rates combined with limited competitive supply, this market is primed for the modern, efficient, cross-docked Class A distribution space that Crossroads Logistics Center will provide,” said Chris Ciliberti, Partner of Ridgeline Property Group’s northeast operations.
Greg Thurman, RPG’s CEO added, “This is RPG’s second project in Pennsylvania, and we are excited to continue to expand the RPG platform nationally, and particularly in the Central Pennsylvania market.”
Crossroads Logistics Center’s strategic location at the confluence of I-81 and I-78 provides excellent access throughout the Northeast region. Located approximately 20 miles northeast of Harrisburg, the large and well-trained workforce within a 30-minute commute creates a strong incentive for companies to operate in this location. The overall vacancy rate for Class A product in Central Pennsylvania is just above 4 percent, placing supply at shortage levels, and absorption has remained strong.
“We’re pleased to partner with a best-in-class developer, Ridgeline Property Group, on this Class A industrial building in this crucial distribution market. RPG has a successful track record developing bulk distribution space across the country, and we look forward to partnering with them on Crossroads Logistics Center to provide the Central Pennsylvania market with much-needed Class A distribution space,” said Martha Shelley, Senior Portfolio Manager at American Realty Advisors.
Located on MSC Drive in Jonestown, Pa., Crossroads Logistics Center is just over three quarters of a mile from I-81, and just over two miles from the I-81/I-78 Interchange, two major north-south and east-west routes, respectively, that connect the project to Philadelphia, Washington, D.C., Baltimore, New York and other important industrial markets. In addition, the location offers distributors and manufacturers convenient access to three major intermodal rail stations, as well as FedEx and UPS distribution hubs. “The investment in a new ground up, Class A, distribution facility in this critical Central Pennsylvania location is a strategic investment for American and is anticipated to provide favorable risk-adjusted returns to our investors,” added Shelley.
The 398,250-square-foot distribution facility is expandable to 450,000 square feet, and will feature 36-foot clear heights, 85 dock doors in a cross-docked configuration, four drive-in doors, highly efficient 55-foot by 56-foot column spacing, early suppression fast response (ESFR) fire sprinklers and high-capacity parking, including 206 auto spaces and 116 trailer storage stalls. Additional parking and trailer storage stalls can be made available. The project has received the LERTA (Local Economic Revitalization Tax Assistance) Tax Abatement at the township level, with County and School District approval expected in mid-May 2016.
About Ridgeline Property Group
Ridgeline Property Group is a commercial real estate development and investment company operating throughout the United States. Headquartered in Atlanta, the firm has a particular focus on the acquisition, development and management of high-quality industrial and office properties in strategic markets. RPG’s regional partners have more than 125 years of combined experience in the commercial real estate industry and have developed in excess of 115 million square feet of space in more than 30 states. For additional information, please contact www.ridgelinepg.com.
About American Realty Advisors
With over $7.3 billion in assets under management, American Realty Advisors is a leading provider of commercial real estate investment management services. For over 27 years, American has managed capital for institutional investors utilizing core and value-added commingled funds and separate accounts. American acquires assets directly or provides equity, preferred equity, mezzanine debt, debt, and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multi-family, and retail properties. More information regarding American can be found at www.americanreal.com.