Capital Development Kicks Off 2.3 MSF Savannah Project
- Jun 21, 2018
Aiming to meet the needs of import, export and e-commerce customers of the growing Port of Savannah in Georgia, Capital Development Partners has broken ground on a 2.3 million-square-foot, $125 million logistics campus.
Savannah Port Logistics Center is a joint venture between the Atlanta-based Capital Development Partners, a national developer of industrial and infrastructure facilities, and Greenfield Partners, a private equity real estate firm headquartered in Westport, Conn., with $3.3 billion in gross assets under management.
“The Savannah Port Logistics Center is the most significant industrial and logistics development in the Southeast. Our facilities and infrastructure will provide a significant advantage for our customers,” John Knox Porter, CEO of Capital Development Partners, said in a prepared statement. Porter is a former top producer at CBRE, where he led the global logistics and infrastructure practice groups during a 25-year career with the firm.
Two industrial buildings with 40-foot ceilings and cross dock capabilities will be constructed at the 197-acre site in Pooler, Ga., which will have more than 2,000 container storage positions. The industrial campus will have access to the Norfolk Southern and CSX Tier 1 railroads. Building I is a roughly 1 million-square-foot asset slated for occupancy by April 2019. Construction is expected to begin later this year on Building II, which will have 1.3 million square feet of space.
In addition to the dual rail capability, the Savannah Port Logistics Center is set to feature multiple routes to the port and access to major interstates, including I-16 to Atlanta and the Midwest and I-95 up and down the Eastern Seaboard, as well as Highway 80, Jimmy DeLoach Highway, SH Morgan Parkway and Pooler Parkway.
Growing demand for port facilities
The center will be located about 10 miles from Port of Savannah, the fastest-growing and largest single-container port in the U.S. Demand for modern industrial and logistics facilities has been fueled by the widening of the Panama Canal, a $5 billion project completed two years ago, as well as the global e-commerce boom. The enhanced Panama Canal allows ships to triple capacity. Savannah is one of several U.S. ports deepening their channels to handle the larger ships. The Savannah Harbor deepening, expected to cost more than $700 million, is set for completion in 2021 and additional funding for the project was recently included in the U.S. Army Corps of Engineers 2018 work plan, according to Atlanta Business Chronicle.
Last August, a report by JLL examined the impact the Panama Canal expansion and other shipping industry issues had on U.S. port and trends affecting the ports and their surrounding real estate. The report noted vacancy rates for industrial port-centric properties were at record lows and construction was planned or occurring, primarily in the East and Gulf Coast ports, to meet the demand. JLL stated Mid-Atlantic and Southeastern seaports had seen a 20 percent increase in shipping volumes compared to five percent for the West Coast.
In Georgia, Capital Development isn’t the only company planning industrial and logistics facilities near the Port of Savannah. Earlier this year, Duke Realty started development of a 1.4 million-square-foot distribution center in Bloomingdale, Ga., for Floor & Décor within the 250-acre Morgan Business Center.
Image courtesy of Capital Development Partners