Stellantis to Build $388M Metro Detroit Distribution Facility
The 2 million-square-foot project is the next step in the automaker's consolidation efforts.
Stellantis will invest $388 million to build a Mopar service parts distribution facility in Van Buren Township, Mich., dubbed Metro Detroit Megahub. The project is set to measure roughly 2 million square feet, according to Crain’s Detroit Business.
Stellantis intends to collaborate with developers Hillwood and Sterling Group for the 350-acre project. However, no lease agreement was yet reached as of May 2, the same source shows.
Megahub will take shape at the intersection of Denton and Ecorse roads. Downtown Detroit is roughly 31 miles northeast, while Willow Run Airport borders the site. Thoroughfares such as U.S. Route 12 and Interstate 94 are within 5 miles.
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This development lands amid the company’s efforts to consolidate its operations. In a sale-leaseback, Stellantis disposed of its Marysville, Mich., Milwaukee and Center Line, Mich., parts distribution centers. E&E McLaughlin and Phoenix Investors purchased the assets in separate deals, according to CommercialEdge.
Set to debut in 2027, the facility will feature an automated storage and retrieval system. The Center Line and Milwaukee workforce will transition to Megahub upon its completion, while the Maryville operations are set to shift to a different location in Warren, Mich., where Stellantis is working on an e-coat upfitting facility.
This approach mirrors the automotive firm’s streamlining move at its newly opened East Fishkill, N.Y., distribution center, which merged the activities of two of its facilities.
Significant move-outs contributed to a slow first quarter
Metro Detroit’s industrial pipeline comprised just shy of 900,000 square feet under construction in March, according to a CBRE report. The largest of the four projects underway measured 715,000 square feet. What’s more, just 30,000 square feet of industrial space debuted during the first quarter.
Despite the setback in industrial deliveries, the market’s availability rate grew 30 basis points to 5.2 percent quarter-over-quarter, the report shows. Significant tenant move-outs led to a negative absorption of 1.7 million square feet, affecting the index.
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