PCCP JV Lands $56M for Philly Industrial Development

Principal Asset Management provided the construction financing.

Tristate Industrial Construction

Tri-State Industrial will total 525,000 square feet. Image courtesy of JLL

PCCP LLC and KPR Centers have secured a $56.3 million construction loan for the development of Tri-State Industrial, a facility totaling 525,000 square feet in Claymont, Del., in metro Philadelphia. JLL arranged the loan, which was provided by Principal Asset Management.

Tri-State Industrial will be rising at 401 Naamans Road and will include 40-foot clear heights, ample column spacing, 60-foot speed bays, ESFR sprinkler systems, LED lighting, four drive-in ramps, 99 dock doors, 130-foot truck courts, as well as ample vehicle and trailer parking space.

Located on 36 acres, the Class A warehouse facility will provide easy access to interstates 95 and 495, and the New Jersey Turnpike. The property is situated 9 miles from The Port of Wilmington, 11 miles from Philadelphia International Airport and within 26 miles of The Port of Philadelphia. Additionally, the industrial project’s access to the area’s highway transportation systems will allow easy access to more than 1.3 million consumers and to Philadelphia’s and Southern New Jersey’s workforce pool.

The JLL Capital Markets Debt Advisory team working on behalf of the borrowers was led by Senior Managing Director Chris Drew, Senior Director Mike Pagniucci and Director Michael DiCosimo.

A hotspot for industrial development in the Northeast

Philadelphia leads the major Northeastern markets for the amount of industrial space under construction, according to a recent CommercialEdge report. The metro had some 17.4 million square feet in its pipeline as of July, representing 4.1 percent of the local inventory, followed by New Jersey (with 9 million square feet underway) and Boston (with 5.5 million square feet).

Recent projects announced in the area include Foxfield’s Lower Bucks Logistics Hub, a two-property project totaling 814,567 square feet of Class A space. JLL Capital Markets arranged $114 million in non-recourse financing for the development. In July, DH Property Holdings secured $175 million financing for a 750,000-square-foot last-mile distribution project in Philadelphia. Completion is scheduled for late 2024.

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