KPR, PCCP Land $70M for Delaware Industrial Facility

March 25, 2026

The property is a conversion from retail to industrial use.

Aerial shot of the 525,000-square-foot industrial facility at 401 Naamans Road in Claymont, Del. — The Tri-State Distribution Center was originally a retail center converted in an industrial facility.
*Image courtesy of JLL Capital Markets*

A partnership between KPR Centers and PCCP has secured a $70 million bridge loan for a 525,000-square-foot industrial facility in Claymont, Del. Pearlmark issued the three-year note with extension options on behalf of its new senior mortgage debt fund, PRSM I. JLL Capital Markets arranged the deal, representing the joint venture.

The building is the result of a retail-to-industrial conversion. The partnership acquired the 588,000-square-foot Tri-State Mall site in June 2021 and obtained a $56.3 million construction loan for the redevelopment in August 2023.

The facility features 40-foot clear heights, 97 dock doors, four drive-in doors and 114 trailer spaces, across a 36.4-acre site. The property is at 401 Naamans Road, just off Interstate 95, about 9 miles northeast of Wilmington, Del. Downtown Philadelphia and Philadelphia International Airport are 24 miles and 12 miles away, respectively.

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JLL Capital Markets Senior Director Michael Pagniucci, Senior Managing Director Chad Orcutt and Senior Managing Director Chris Drew, together with Associate Ethan Rodgers and Analyst Michelle Morgenstern secured the bridge financing on behalf of the borrowers.

Industrial rents, vacancy rise

Philadelphia had one of the highest in-place industrial rent growths in January, namely 6.8 percent on a trailing 12-month basis, clocking in at $8.63 per square foot, according to the latest Yardi Matrix industrial report. The metro’s average vacancy rate during the same month stood at 8.9 percent, lower than the national figure of 9.6 percent. The national in-place industrial rents clocked in at $8.94 per square foot in January, up 7 cents compared to December 2025 and 5.1 percent higher than the value registered in January 2025.

In terms of supply, the Mid-Atlantic metro had more than 4.8 million square feet of industrial space under construction as of the first month of this year, accounting for 1.0 percent of total stock. If we take into the account the planned projects as well, the figure rises to 2.7 percent of total stock, positioning the metro in the second half of Yardi Matrix’s top 30 list.