SUBMITTED NEWS RELEASE
Dermody Properties has announced the completion of a new corporate headquarters and distribution center for Penn Jersey (PJP). Designed to be LEED Silver Certified, it is the largest project of its category developed in the Philadelphia region. The project in northeast Philadelphia has allowed PJP to keep this strategically located facility within the City of Philadelphia instead of relocating out of the region, retaining 250 existing jobs in the City. The new facility will also allow PJP to expand its operation in the future, creating even more jobs. Dermody Properties’ corporate offices are located in Reno, Nev.
The new 255,336 square foot facility, located on 30 acres of land at 9355 Blue Grass Road, is owned by a joint venture comprised of Dermody Properties and Boston-based Great Point Investors LLC. Dermody Properties represented the joint venture in the transaction. PJP signed a 15-year lease for the facility and will begin operations in the new location beginning May 17, 2011.
In addition, 230 construction jobs were created since the project began in June 2010, and the project contributed an estimated $51 million in direct and indirect economic benefits to the region. Dermody Properties anticipates the facility will receive the official LEED Silver Certification by summer.
Dermody Properties and PJP worked with the Philadelphia Industrial Development Corporation (PIDC) to identify the land site on which the PJP facility would be built. PIDC is a private, not-for-profit Pennsylvania corporation that promotes economic development and job creation; it manages the acquisition, development, and disposition of industrial and commercial land in strategic locations throughout Philadelphia on behalf of the City.
The site is part of Pennsylvania’s Keystone Opportunity Zone (KOZ), which provides tax abatements and other incentives for 10 years from the date of occupancy by a qualified tenant.
“Keeping Penn Jersey in Philadelphia is a great indicator of the City’s economic vitality, and Dermody Properties was honored to be able to play a role in keeping those jobs here,” said John Atwell, DP Partners’ Chief Operating Officer. “Our team is proud to have worked with PJP, PIDC and the City to turn a very challenging land site into a state of the art distribution facility that will allow PJP to efficiently serve their customers and expand as the company continues to grow.”
The new location is more than 75,000 square feet larger than PJP’s current facility on Red Lion Road in northeast Philadelphia and is the first new facility for PJP since the company started in 1963. PJP is a fully integrated distributor of packaging, paper, janitorial chemicals, restaurant equipment and supplies. The company carries more than 8,500 items, including many leading national brands and serves customers throughout the nation’s northeast region from its Philadelphia location.
“PJP has seen steady growth over the last 48 years, and this new facility will enable us to better service our existing customers and position our company for future growth,” said Tom Furia, Jr., President and Chief Operating Officer of PJP. “We credit the City of Philadelphia and PIDC for working with us to retain 250 jobs in the City, and Dermody Properties for their strategic approach to the development of the project on a site that will allow us to expand our operations and create even more jobs.”
The Dermody Properties development team includes Atwell, as well as Matthew Marshall, James V. Mascaro, LEED AP, and Stephen G. Bailey of the DP Partners Eastern Regional office.
“I’m very proud of our Eastern Region office for its continued high level of service to our customers,” said Michael Dermody, Chairman and CEO of Dermody Properties. “Penn Jersey is a great company, and we’re proud to provide them with this new facility. I’d particularly like to recognize the teamwork between the City of Philadelphia, PIDC and our partner Great Point on this project. In this economy, true teamwork is how things get accomplished.”
“This project combines all of the elements which we look for in an investment: solid returns, a quality partner in Dermody Properties, and a market-leading customer in Penn Jersey,” said Joseph Versaggi, Principal of Great Point. “This is our third industrial transaction with Dermody Properties in a relatively short time, and we continue to be strongly supportive of that relationship. We also remain committed to investing in the Metro Philadelphia region.”
PJP was represented in the lease transaction by the Philadelphia-area CB Richard Ellis brokerage team of Steve Marzullo, Senior Vice President of Investments; Patrick Green, Executive Vice President; and Michael Mullen, Senior Associate. Blue Rock Construction was the general contractor for the project.
About Dermody Properties:
Dermody Properties is a privately held national industrial real estate development company. Founded and headquartered in Reno, Nev., it has regional offices in Portland, Ore., Philadelphia, Penn., and Chicago, Ill., as well as property holdings in Las Vegas, Nev., and Savannah, Ga. Over the last three years, DP Partners has developed and purchased more than 4.5 million square feet and leased approximately 1 million square feet annually. Over its 50-year history, the company has developed and leased more than 35 million square feet of high quality industrial/distribution facilities to many Fortune 500 companies and other well-respected firms. . They are consistently ranked among the top 10 private developers nationwide. In 1988, company leadership created the Dermody Properties Foundation, which is managed by the employees of the company to provide charitable support to the communities in which they do business. To learn more about Dermody Properties/DP Partners, visit www.dermody.com.
