Logistics Property Co. LLC has secured a tenant to occupy I-80-380 Logistics Center, its new speculative industrial project in Mount Pocono, Pa., four months in advance of its completion. The company isn’t naming names, but it has leased the 750,000-square-foot distribution facility in its entirety.
LPC isn’t at liberty to divulge additional information about the I-80-380 tenant or the terms of the lease agreement, but when asked if surprised by the prelease commitment, Mark Glagola, a senior vice president with Logistics Property Co. LLC, told Commercial Property Executive, “We built a great project with a great team and the market responded.” Cushman & Wakefield’s Daniel Walsh represented the landlord in the lease transaction, while CBRE’s Mike Barker stood in for the tenant.
Sprouting up at 145 Market Way on a 62.5-acre site prepared by Schlouch Inc., I-80-380 takes its name from its location fewer than 10 minutes from Interstate 80 and roughly five minutes from Interstate 380. The Harris Architects-designed property sits within 90 miles of New York City and is within a day’s drive of 40 percent of the U.S. population and 50 percent of the Canadian population.
The entire Northeastern Pennsylvania region is emerging as a magnet for industrial-space users. “[The area] has become one of the leading logistics hubs along the Eastern Seaboard. The area has become a hotbed for direct-to-store, e-commerce, and last mile distribution operations,” according to a white paper by Mericle Commercial Real Estates Services.
“NEPA’s combination of immediate interstate access, close proximity to the East Coast’s consumption zones, availability of FedEx and UPS service, new speculative industrial development, affordable operating costs, and a great workforce backed by an exceptional higher education network, continues to drive logistics growth in the region.”
LPC is developing I-80-380, its first project in Pennsylvania, with the assistance of an approximately $28 million loan that First National Bank originated with First National of Pennsylvania in May 2020. The project is on schedule to deliver in September 2021.
LPC is in a major expansion phase. The prelease at I-80-380 comes five months after LPC’s final closing of LPC Logistics Venture One LP, the industrial real estate company’s develop-to-core fund, with equity commitments totaling $1 billion. The Fund focuses on ground-up development of state-of-the-art logistics facilities across the U.S., I-80-380 among them.
Another property will soon add to the square footage of LPC’s growing portfolio. This quarter, LPC will deliver Southport Logistics Park Building 3 in Wilmer, Texas. The 1 million square-foot facility, which is expandable to 1.2 million square feet, is located within a 252-acre master-planned logistics destination in the Dallas-Fort Worth area.