Newland Capital Group, a national industrial investor, developer and asset manager, has acquired an 85-acre development site in Mount Pocono, Pa., and leased a soon-to-be-constructed 1.2 million-square-foot distribution center to an unidentified major industrial tenant.
JLL’s Northeast Industrial Region team arranged the sale and secured the tenant for the property located off I-380 and I-80 on the eastern edge of the Northeast Pennsylvania industrial market. The name of the seller, price paid for the property and identity of the tenant preleasing the building were not disclosed.
Newland was represented by JLL’s Northeast Industrial team led by Executive Managing Director Jeff Lockard, Vice President Ryan Barros and Associate Kevin Lammers. The team worked with Casey Mungo of DAUM Commercial to arrange the sale and negotiate the lease. JLL Managing Director Steve Cooper represented the property seller.
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Construction of the distribution center is slated to begin in early October and be completed by the first quarter of 2024. The state-of-the-art facility will feature 191 truck doors, four drive-in doors, 359 trailer stalls and parking for 426 vehicles.
Ty Newland, managing principal of Newland Capital Group, which has offices in Atlanta and Irvine, Calif., said in a prepared statement the project will provide jobs and help the economy of the Poconos region and will also add logistics space in the heart of one of the mostly densely populated markets. More than 24 million people live within the New York, New Jersey, Connecticut and Pennsylvania combined statistical area.
Pennsylvania market report
Northeast Pennsylvania continues to be a core industrial market for occupiers and investors. Companies including medical supplies distributor Medline Industries, General Mills, Lowe’s and NFI Logistics have built or leased millions of square feet of space, driving the market’s industrial vacancy to record low levels.
Class A vacancy fell to a record low of 1.7 percent during the past year, according to JLL’s 2Q 2022 report covering the Eastern and Central Pennsylvania market. Rents increased more than 24 percent year-over-year to $7.93 per square feet, the report noted. More than one-third of the 42.6 million square feet of new product under construction has been preleased.
Demand was high in the second quarter and is expected to remain so for the rest of the year. In the second quarter, developers broke ground on 4.3 million square feet of speculative industrial construction in the market. The report notes 24 active spec construction projects exceeding 500,000 square feet are available and expected to deliver within 12 months. JLL anticipates a third consecutive year of record positive net absorption.
