Lovett Breaks Ground on Philly Last-Mile Project
Lovett Industrial has broken ground on Highway 1 Commerce Center, a 176,105-square-foot speculative development in Philadelphia focused on the need for Class A last-mile space near major highways.
A Cushman & Wakefield Debt and Equity team led by Vice Chairman John Alascio helped secure construction financing for this project, a $22.6 million loan from First Citizens Bank.
Having BSI Construction as general contractor, the warehouse is slated for delivery by the third quarter of 2025.
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Lovett acquired the land for Highway 1 Commerce Center in November 2023. The 14.5-acre site at 11301 E. Roosevelt Blvd. has direct access to downtown Philadelphia and the broader market via Highway 1 and Pennsylvania Turnpike, as well as quick access to Interstate 95.
Upon completion, the warehouse will feature a 280-foot building depth, 36-foot clear height, 28 dock doors, two drive-ins, 131 car parks and 25 trailer parks. The industrial facility will be aimed at a wide range of tenants seeking space from 75,000 to 176,105 square feet. Cushman & Wakefield Executive Managing Director Jonas Skovdal and Director Chris Butera spearhead the marketing and leasing efforts at the property.
Strong tenant demand for Philly industrial spaces
Cushman & Wakefield’s second quarter 2024 industrial report for the market stated tenant demand has been strong since the beginning of the year. Some 4.1 million square feet were leased up through the first half of the year, up 39.4 percent on a year-to-date basis.
The report noted the surge came from a 168.7 percent increase in Southern New Jersey’s leasing volume, making up 85.2 percent of the Philadelphia’s total market, similar to trends seen during the pandemic.
Seven new transactions greater than or equal to 100,000 square feet closed during Q2. The average overall vacancy rate for the market rose by 90 basis points to 9.2 percent quarter-over-quarter, primarily driven by upticks in Delaware and Salem counties.
Asking rents in the Philadelphia region are expected to see moderated growth or potential stabilization, according to the report. Vacancy rate increases are to taper off as new deliveries slow and construction starts remain tempered. Cushman & Wakefield anticipates users in the market will continue to seek out premium space and greater Philadelphia will remain a top-tier market for industrial investment.
Lovett U.S. activity
Founded in 2020, Lovett Industrial is active in more than 15 markets across the nation. The firm’s industrial portfolio comprises approximately 16 million square feet of completed, acquired and under-construction warehouses and more than 10 million square feet of facilities planned for future development.
In July, Lovett secured entitlements to develop Schaefer Logistics Center, a 298,000-square-foot industrial project in Chino, Calif., within the Inland Empire West submarket. The company had acquired the development site for $40 million last year, according to public records. Completion is expected by the end of next year.
Also this summer, Lovett completed construction of Broadway Logistics Center, a 201,329-square-foot Class A rear-load industrial building in Denver. The firm had broken ground on the speculative project in 2022.
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