D2 Organization Acquires 76-Acre Site with Financing Arranged by D2 Capital Advisors
Local developer plans $55 million industrial complex in South Jersey
By Paul Schwedelson – Reporter, Philadelphia Business Journal, Jul 21, 2025
D2 Organization has acquired a 76-acre property in Carneys Point, New Jersey, with plans to build two distribution warehouses at the site totaling 476,300 square feet.
East Norriton-based D2 Organization paid $5.7 million to acquire the former farm at 965 Harding Highway from private owner Fedele DePalma.
Building 1 is planned to span 315,700 square feet while Building 2 would span 160,600 square feet. D2 Organization CEO Keith Delaney said construction would likely start in 2026. The project’s development cost, excluding the land acquisition, is estimated at $55 million, which would translate to $115 per square foot.
The site is two miles from an entrance to I-295 and five miles from the Delaware Memorial Bridge. Amazon and Trek Bicycles lease space in warehouses nearby, a positive sign for Delaney.
“This made a lot of sense for a distribution facility because you’re not crossing through neighborhoods and you have direct access to 295,” Delaney said. “So for us, it was a no-brainer.”
After a four-and-a-half-year process, the site is fully entitled having received approvals from the New Jersey Department of Transportation and New Jersey Department of Environmental Protection in addition to Salem County approvals.
The site benefits from Payment In Lieu of Taxes, or PILOT, incentive program from the state of New Jersey. The project is planned to have 120 trailer parking spots and 361 car parking spots. Building 1 would have 69 dock doors and Building 2 would have 31.
Toronto-based debt fund Romspen provided a $7.5 million bridge loan, which was arranged by D2 Capital Advisors’ Jack Cortese, David Frankel and John Lightcap. The loan finances the acquisition and pre-development costs.
Delaney said D2 picked a location like this one because projects in and around Carneys Point have been resilient despite a recent uptick in industrial vacancy across the region.
In February, D2 sold a 48-acre site fully approved for a 700,000-square-foot industrial warehouse complex to EQT Real Estate at 1, 3, 4 and 7 Collins Drive within the Salem Commerce Park. Since 2019, D2 has entitled more than 4.1 million square feet of industrial land, which has all been sold to or developed by institutional investors.
“South Jersey’s industrial market over time has proven itself,” Delaney said. “We're not really a developer who jumps at every peak and valley. The market starts to turn, we don't run. Market goes up, we benefit. So we're not necessarily market driven.”
The two buildings are planned to be built speculatively without tenants. Since construction isn’t scheduled to begin until next year, Delaney said existing trends regarding tenant demand could shift by the time D2’s marketing efforts begin.
Delaney said smaller buildings, less than 250,000 square feet, have received more tenant demand recently. But he said the decision to split the property into two buildings was driven more by the layout of the site rather than recent trends.
Regardless of shifts in tenant demand, Delaney said D2’s focus is on sticking to core markets throughout the Mid-Atlantic including South Jersey, Southeastern Pennsylvania, Northern Delaware and farther south near Baltimore and Virginia.
“We’re extremely bullish on the Mid-Atlantic,” Delaney said. “We’re not slowing down. Now is a great time to grow.”