D2 Organization Acquires 48-Acre Site with Financing Arranged by D2 Capital Advisors
Trio of Class A warehouse buildings coming to Salem County
DRBA sells Carneys Point properties to D2 affiliate
By: Jessica Perry
Carneys Point will be the site of three Class A warehouse buildings at the former Salem Business Center following Delaware River and Bay Authority’s sale of its last remaining properties at the site.
D2 Collins LLC, an affiliate of the D2 Organization, acquired 1, 3, 4 and 7 Collins Drive at what is now the Salem Commerce Park. The $15.63 million deal, announced Jan. 11, closed Dec. 22, 2022, according to the seller.
The assemblage includes three vacant parcels (3, 4 and 7 Collins Drive) totaling 35 acres and one 10-acre parcel (1 Collins Drive) with a 78,000-square-foot office building. D2 said it also purchased an adjacent 3-acre residential outparcel, bringing the total developable acreage to 48 acres.
Before closing D2 entitled the vacant land for the three warehouse buildings planned for the property, which will total 586,000 square feet, according to the company, with ample car and trailer parking.
Miami-based BridgeInvest provided $16.1 million in financing for acquisition and pre-development costs, D2 said; the debt was arranged through the company’s affiliated capital advisory group, D2 Capital Advisors.
“The D2 Organization remains very grateful for having had the opportunity to work with the Delaware River Bay Authority in further developing this excellent location,” D2 Executive Vice President Daniel McGreevy said in a statement. “Now that we have successfully closed this real estate transaction, the D2 team is actively working to bring quality tenants and new jobs to Carney’s Point Township.”
Spurring development
The completed sale marks the end of DRBA’s ownership at the complex, which it said it acquired in 1998.
Stephen Williams, deputy executive director of the bi-state agency, said that the organization laid the foundation for the Salem Business Center to be an engine for future growth.
“The Authority invested its resources in this project to spur development and its associated job growth for area residents,” Williams said in a statement. “The timing and conditions are right for the private sector to take over and move it forward. It’s always been the agency’s intention to make this transition at some point, and D2 is an established real estate development firm. We’re confident that the Salem Business Centre will reach its full potential.”
With offices in Pennsylvania and Delaware, D2 said it has successfully entitled more than 2.75 million square feet of industrial projects in Salem County since 2019.
Salem Commerce Park is located immediately off Interstate 295’s Exit 4 at the Highway 48 interchange. The New Jersey Turnpike interchange is just 3 miles away and the Delaware Memorial Bridge is 4 miles away.
In its 2022 Big-Box Outlook Report, Colliers identified Southern New Jersey-Eastern Pennsylvania as one of four markets nationwide that had occupancy gains of more than 30 million square feet at the end of 2021: With 44.5 million square feet reported for the region, it led the pack, followed by Chicago, Dallas-Fort Worth and Atlanta. Identifying the local market as the best in North America, Colliers highlighted the prime location, strong labor force and available land for development.
According to DRBA, the two-story building located at 1 Collins Drive currently has two tenants – U.S. Renal Care and Lassonde Pappas – who occupy approximately 80% of the space.
Carney’s Point-based American Dream Realty represented D2 in the transaction.
Source: https://njbiz.com/trio-of-class-a-warehouse-buildings-coming-to-salem-county/