Demo begins on former Kraft site to make way for two logistics centers

In a sign of the continued acceleration of growth in logistics and warehouse space, the new owners of the former Kraft manufacturing plant have started redeveloping the property to build two Class-A distribution facilities.

Ridgeline Property Group of Atlanta, Ga., said it bought the 92-acre site at 7352 Industrial Blvd. in Upper Macungie Township and plans to transform it into 1.46 million square feet of distribution space, called Park 100 Logistics Center.

The firm bought the property for $36.5 million, according to Lehigh County assessment records.

“Demolition of the Kraft manufacturing plant has commenced,” said Michael Gray, president of RPG, in a statement. “We expect horizontal construction to begin in the summer of 2017.”

The first building could be completed in the first quarter of 2018, he said.

While no tenants have been secured, the project has attracted interest, Gray said.

“The ownership’s intent is to develop two speculative industrial buildings, 730,080 square feet each, but we have received preliminary interest for campus-type build-to-suit developments,” Gray said.

The site is about one mile from the Route 100/Interstate 78 interchange.

Jake Terkanian, Joe McDermott and Vincent Ranalli of CBRE Inc.’s Philadelphia office are marketing the property.

Gray declined to disclose the estimated construction cost.

The vertical design and construction incorporates sustainable features, and the concrete pavement reduces the heat island effect, Gray said. The interior lighting will have energy-efficient lights and motion sensors and be compliant with energy code requirements, Gray said.

QEI Construction Group of Pottsville is the general construction manager, he said.