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Tag: distribution center

Suffolk logistics center moves ahead

Despite lingering community opposition, Suffolk officials remain committed to the Port 460 Logistics Center, a warehouse complex on Pruden Boulevard at the U.S. Route 58 interchange, a major freight corridor to the Port of Virginia.

In September 2022, Suffolk City Council approved rezoning 540 acres from general commercial and agricultural to heavy industrial use, paving the way for Frederick, Maryland-based Matan Cos. to build 10 warehouses with up to 5 million square feet of space to attract warehousing and logistics tenants. Port 460’s initial phase includes two 350,000-square-foot buildings and a 1 million-square-foot building. The project is expected to generate 2,600 construction jobs and 9,000 long-term positions. Construction could begin late this year, with the first warehouse ready by late 2024 or early 2025, says Kevin Hughes, Suffolk deputy city manager.

Matan is investing $420 million to construct the logistics center, $30 million for public road improvements, $6.6 million for engineering costs and interchange improvements and $3 million for fees, utility connections, inspections and reviews. The Port of Virginia provided $1 million to assist with design costs, and Suffolk will partner with the port to secure additional state and federal funding, including improvements to the U.S. 460/U.S. 58 corridor, says Suffolk Mayor Mike Duman.

Port 460 could generate more than $36 million in property taxes, assuming a 10-year completion, Duman adds, and annual local taxes are projected to range from $6.5 million to $8.1 million.

“This is a significant economic investment in our city,” says Duman. “Our city’s large land mass and close proximity to the port will continue to attract this type of investment.”

Citing concerns about increased traffic and detrimental effects to the city’s rural character, a group of citizens filed a lawsuit in October 2022 in Suffolk Circuit Court seeking to nullify the rezoning.

Duman doesn’t begrudge Suffolk residents filing the lawsuit. “It gives our citizens the opportunity to see that the [rezoning] process was transparent.”

He notes that “our citizens have clearly communicated that traffic is their No. 1 concern,” adding that by 2045, truck traffic is expected to increase by 47% on Route 58 and by 90% on Route 460. Those traffic increases are directly tied to expected increases in port activity, he says. “This is inevitable with or without this project, but City Council must ensure these issues are addressed.”   

M S International to open $61.6M Suffolk distribution center

M S International Inc. (MSI), a California-based flooring, countertop, wall tile and hardscaping products supplier, will invest $61.6 million to establish its East Coast distribution facility in Suffolk, a project expected to create 80 jobs, Gov. Glenn Youngkin announced Thursday.

McDonald Development Co. will construct the 548,000-square-foot facility, which will be located at 2821 Holland Road.

“Virginia is one of North America’s premier supply chain destinations, and we are excited to welcome M S International’s East Coast distribution facility to the commonwealth,” Youngkin said in a statement. “MSI will benefit from Suffolk’s prime location and proximity to our world-class port facilities, and we look forward to their success in the Hampton Roads region.”

Founded in 1975 and based in Orange, California, MSI has more than 3,000 employees worldwide, including more than 60 in Virginia. The company has more than 40 showrooms and distribution centers across the U.S. and Canada, with a manufacturing facility for quartz countertops in South Carolina and one for luxury vinyl tile flooring in Georgia.

MSI imports more than 70,000 containers each year from more than 37 countries on six continents. Its inventory spans 300 million square feet.

“MSI is very excited with this huge expansion of our distribution footprint in Virginia,” MSI President Rup Shah said in a statement. “This new hub distribution center will dramatically improve our long-term distribution capabilities across the mid-Atlantic and Midwest. In addition, we are very impressed with the Port of Virginia and its continued investments to ensure a smooth flow of goods.”

The Virginia Economic Development Partnership worked with the city of Suffolk to secure the project, for which Virginia competed with Georgia, New Jersey and South Carolina. Youngkin approved a $225,000 grant from the Commonwealth’s Opportunity Fund to assist Suffolk. MSI is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program, and VEDP’s Virginia Jobs Investment Program will provide funding and services to support employee training.

Food/beverage distributor to create 745 jobs in Caroline

World Class Distribution Inc. (WCD Inc.) plans to build a $275 million, 1.2 million-square-foot distribution center in Caroline County that will create 745 jobs, Gov. Glenn Youngkin announced Wednesday.

A subsidiary of Tact Holdings Inc., WCD distributes food and beverage products, including canned foods, dry foods, candy, grocery, beer and wine, frozen foods and other refrigerated products. The company currently has 11 distribution centers throughout the United States and more than 4,500 employees in eight states.

WCD plans to start operations in 2023 at the Caroline 95 Logistics park in Ruther Glen. Virginia competed against North Carolina for the project. The jobs to be created will be management and facility operations positions, as well as distribution operators, packers and handlers.

“Today’s announcement is an important step forward as we focus on returning more Virginians to the workforce, and I thank World Class Distribution for creating 745 new, high-quality jobs in the commonwealth,” Youngkin said in a statement.“Virginia’s extensive transportation infrastructure is the cornerstone of our position as a leader in supply chain management, and World Class Distribution’s major investment will contribute to the commonwealth’s success in this important industry.”

The Virginia Economic Development Partnership worked with Caroline County to secure the project. Youngkin approved a $3 million grant from the Commonwealth’s Opportunity Fund to assist the county with the project. The company is eligible for benefits from the state’s Major Business Facility Job Tax Credit for new, full-time jobs created. VEDP is also working with the Virginia Department of Transportation to determine eligibility through the Economic Development Access road program.

 

NY publishing company to expand in Orange County

MPS, a division of New York-based Macmillan Publishers, will invest more than $26 million to expand its distribution operation in Orange County, creating an estimated 10 jobs, the county announced Wednesday.

The investment will occur over the next three years. MPS is expanding its current 400,000-square-foot facility by 200,000 square feet.

“This is wonderful news for Orange County. MPS has been a valued corporate citizen for the past 25 years, and we are so excited that they have chosen to invest in the community once again,” Rose Deal, Orange County’s economic development director, said in a statement.

Macmillan Publishers is a trade and higher education publishing company that operates in more than 70 countries. It is a division of German family-owned media company Holtzbrinck Publishing Group.

MPS opened its Orange County facility in 1997 and added a returns facility in 2000. The Orange County distribution facility handles all distribution in the U.S. and Canada, as well as some international business.

The county’s economic development authority offered MPS a $250,000 performance tax grant based on MPS’ investment goals.

Chesapeake warehouse sells for $13.59M

A 70,000-square-foot warehouse and distribution building in Chesapeake sold for $13.59 million in late July, Colliers announced Wednesday.

Located at 3512 Business Center Drive in the Cavalier Industrial Park, the property is 100% leased to the U.S. Postal Service and serves as a seasonal processing and distribution center. It totals 9.72 acres of land, with room for an expansion of about 70,000 square feet. Built in 1998, the property includes a 130-foot truck court.

Michael Blunt and Clay Ellis, with the Colliers Industrial Capital Markets team, as well as Chamie Burroughs, represented the seller, a joint venture led by B&D Holdings. The buyer is NATMI LPF Norfolk LLC, according to property records.

Norfolk warehouse sells for $9M

A warehouse in Norfolk has been sold for $9 million, Cushman & Wakefield | Thalhimer announced June 6.

Selko Real Estate Ventures LLC purchased the 109,609-square-foot industrial building from NorfolkCo LLC as an investment. The property is leased to American Tire Distributors (ATD) as the company’s Hampton Roads tire warehouse and distribution center.

The warehouse is on 7.19 acres at 4554 Progress Road in the Norfolk Industrial Park.

Brett Sain of Cushman & Wakefield | Thalhimer represented the seller and Geoff Poston, also with Thalhimer, represented the buyer.

 

Penn. logistics firm building cross-dock centers in Va.

Pennsylvania-based warehousing and logistics company A. Duie Pyle Inc. will invest about $20 million to establish three cross-dock service centers in Manassas, Richmond and Roanoke, an expansion expected to create 75 jobs, Pyle and Gov. Glenn Youngkin announced Tuesday. It’s the company’s first entry into Virginia.

“Global supply chains are experiencing unprecedented pressure and we are pleased that A. Duie Pyle will take advantage of Virginia’s infrastructure and transportation network as a vital provider of supply chain solutions,” Youngkin said in a statement. “Manassas, Richmond and Roanoke all offer key logistics assets.”

Based in West Chester, Pennsylvania, Pyle has been a family-owned business for almost 98 years. Pyle owns 27 less-than-truckload service centers and 16 warehouses, counting the three Virginia centers, and has 3.5 million square feet of public and contract warehousing space. The company provides logistics solutions, fleet operations and warehousing and distribution services.

“With a long history of providing our customers throughout the Northeast with premier transportation and logistics services, expanding our footprint with three new facilities across the commonwealth of Virginia has positioned us to directly reach key metropolitan areas along the Eastern Seaboard,” Pyle Chairman and CEO Peter Latta said in a statement. “This strategic expansion enables us to improve shipping and schedules, while strengthening our overnight delivery capabilities to neighboring states.”

The new centers will provide Pyle access to Virginia’s ports and connections to Washington, D.C. and Baltimore. The Manassas center, located at 10461 Colonel Court, will have 30 employees, the Richmond one, located at 3609 East Belt Blvd., 25 and the Roanoke center, located at 3348 Sale Turnpike Northwest, 20 employees. Each will have drivers, dock workers, supervisors and fleet technicians. All three will open in April.

The Virginia Economic Development Partnership worked with the cities of Manassas, Richmond and Roanoke, the Greater Richmond Partnership and the Roanoke Regional Partnership to secure the project for Virginia. Pyle is eligible to receive state benefits from the Virginia Enterprise Zone program, administered by the Virginia Department of Housing and Community Development, for the Richmond location.

Complicated history

Rochester, New York-based supermarket chain Wegmans Food Markets Inc. is building a $175 million distribution center and regional headquarters near the intersection of Sliding Hill and Ashcake roads in Hanover County. The 1.1 million-square-foot facility is expected to create roughly 700 jobs, making it one of the most significant economic development projects in county history.

However, not everybody is excited about the supermarket’s new site, and the project has faced pushback since it was announced in 2019.

Wegmans’ facility is one of several warehouse and distribution centers underway in Hanover — a trend that has county economic development officials thrilled over new jobs and major corporate investments.

But residents of Brown Grove, the historically Black community in Hanover where the facility will be located, are leading the resistance to the project, which they contend will disturb cemetery land and is just the latest in a long string of disruptive development projects around their neighborhood.

While two ongoing legal challenges — including one by the Hanover NAACP — navigate through the courts, Wegmans has secured the permits necessary to begin preparing the site, and county officials estimate that the facility could be completed within the next two years.

Brown Grove traces its origins to Caroline Dobson Morris, who was born into slavery and emancipated after the Civil War. Residents there have watched as the surrounding land has been transformed — first by Interstate 95 and then by concrete plants, landfills, a municipal airport and, soon, the grocery distribution center.

“This facility is planned to be the size of the Pentagon and it is being dropped right in the midst of the historic African American community,” says Hanover NAACP President Patricia Hunter-Jordan. “It’s right across the road from a 150-year-old church, which has been the center of the community.”

Wegmans representatives did not return calls seeking comment, but Hanover Director of Economic Development Linwood Thomas IV says the grocery chain wants to work with Brown Grove.

“[Wegmans will] continue to work with the surrounding communities, including the Brown Grove community, to look for ways to partner with them,” Thomas says. “They want to be good community partners.”

While Wegmans has begun clearing land, pending court cases could impact the site’s future.

Five neighbors of the future distribution facility filed suit against the Hanover County Board of Supervisors, the former property owners and Wegmans, challenging the board’s decision to offer Wegmans proffered conditions on the site — including allowing graves to be moved.

A judge dismissed the lawsuit in August, on the grounds that the neighbors do not have standing in the case. Shortly after that ruling, Wegmans purchased the site for $4 million and announced plans to begin construction. The neighbors appealed to the Supreme Court of Virginia, and if it decides to hear their case, it will be ruling only on whether or not neighbors have standing.

Meanwhile, the Hanover NAACP and a group of residents have filed a second lawsuit against Wegmans, the state and the Department of Environmental Quality alleging that the State Water Control Board did not choose the least environmentally damaging alternative for the Wegmans site, says Brian Buniva, the attorney representing plaintiffs in both cases. The suit also alleges that the DEQ did not thoroughly vet the application that Wegmans submitted and allowed the grocer to dramatically underestimate the amount of wetlands that would be impacted by the project.

“Corners were cut for Wegmans that nobody else in the commonwealth gets,” says Chris French, the environmental justice chair for NAACP’s Hanover branch. “That should get everybody’s attention. The rules of a farmer who wants to create a pond will be held up much more strictly than a corporation like Wegmans.”

Opponents to the development also say that building on the site would unearth graves of their ancestors, although searches conducted by both community members and consultants hired by Wegmans have failed to find definitive evidence of graves.

One of the proffered conditions that county supervisors approved in 2020 changed a requirement to leave any gravesites undisturbed. Instead, the property owners can relocate graves.

“Any graves that are discovered (and which are in conflict with the approved plan or the necessary improvements) have to be treated with respect and must be appropriately relocated as required by state regulations,” Hanover County Attorney Dennis A. Walter wrote in an email.

As the legal wrangling continues, county officials are confident Wegmans and regulatory agencies followed the necessary steps.

“This was analyzed with a fine-tooth comb,” Thomas says. “It has been reviewed. We don’t look at these lawsuits lightly.” 

Amazon to open Augusta County distribution facility

Amazon.com Inc. will open a 1 million-square-foot, nonsortable fulfillment center in Augusta County, creating 500 jobs, Gov. Glenn Youngkin announced Wednesday.

The facility at 32 Trader Road in Fishersville will open in spring 2023 and will pick, pack and ship bulky or larger-sized items, such as patio furniture, outdoor equipment or rugs.

“This new 1 million-square-foot fulfillment center in Augusta County will enhance Amazon’s supply chain and create 500 valuable jobs for the Shenandoah Valley,” Secretary of Commerce and Trade Caren Merrick said in a statement. “Virginia’s position as a premier logistics destination is bolstered by continued investments from industry leaders like Amazon, which is catalyzing economic development in regions across the commonwealth.”

Amazon has more than 30 fulfillment and sorting centers and delivery stations in Virginia. The first opened in Sterling in 2006.

“We are proud to expand our Virginia operations with this Fishersville fulfillment center,” said Amazon’s Vice President of North America Customer Fulfillment Melissa Nick. “This facility joins two recently launched delivery stations in Waynesboro and Louisa and will be vital to our ability to serve customers and provide great selection and fast Prime shipping speeds across the region.”

The Virginia Economic Development Partnership worked with Augusta County and the Shenandoah Valley Partnership to secure the project for Virginia. Amazon is eligible to receive benefits from the state’s Major Business Facility Job Tax Credit for new, full-time jobs created.

Other Amazon projects coming in 2022 include an inbound cross-dock fulfillment center in Chesapeake and a robotics fulfillment center in Suffolk, both opening in spring.

“Jump-starting the economy is a top priority for my administration, and we celebrate the 500 new jobs in Augusta County and a strengthened partnership with Amazon,” Youngkin said. “Amazon’s new fulfillment center in Virginia is a testament to the commonwealth’s exceptional infrastructure, competitive business costs and long-term commitment that I’ve made to make sure we are developing talent and training workers to make Virginia the best state for business.”

Lowe’s warehouse to create 70 jobs in Roanoke County

A new Lowe’s warehouse and distribution center is expected to create 70 jobs in Roanoke County, the $11 million project’s developer announced Monday.

Lowe’s Cos. Inc. has hired Roanoke-based Cherney Development, in partnership with North Carolina-based Samet Corp., to build a 60,000-square-foot distribution warehouse and distribution center on an 8.45-acre site in Roanoke County’s Valley TechPark. Construction is expected to begin in the next few months and be completed within about a year.

“We’re on the cusp of great leaps in logistics and the delivery of consumer goods enabled by the rollout of 5G and IOT technology,” Cherney Development founder and CEO Jim Cherney said in a statement. “To realize the full benefits this provides, we need physical infrastructure in place, and I’m proud to work with Samet Corp. and Roanoke County Economic Development who helped pave the way to make that possible right here in the Roanoke Valley.”

Cherney bought the site in January 2021. In addition to Lowe’s, the company also has plans to construct several 1,500-square-foot industrial warehouses.

Cushman & Wakefield | Thalhimer handled the brokerage. First Community Bank is financing the project.