Hillwood to Deliver 1.7 MSF Kentucky Industrial Project
- Sep 21, 2017
A joint venture between Hillwood—a Perot company—and Al. Neyer is developing Erlanger Commerce Center, a state-of-the-art distribution center in Erlanger, Ky. The two speculative buildings will total more than 1.7 million square feet, and will be located at the intersection of interstates 75 and 275.
“Erlanger Commerce Center’s location offers convenient interstate access and is in close proximity to the core of Cincinnati, providing access to a larger and more diverse labor pool,” Kurt Nelson, senior vice president and market leader at Hillwood, told Commercial Property Executive. “We view the market as having strong industrial development potential, as demand continues to grow and the employers we serve continue to seek locations near strong labor population centers such as Cincinnati.”
The joint venture acquired the property late last month and Al. Neyer, as the project’s architect and construction manager, has already started making improvements to the site in preparation for development.
The construction of Building 1, which is planned to total 779,922 square feet, will start in 2018. Features will include 36-foot clear height, an ESFR sprinkler system and cross-dock configuration. It will offer 159 trailer storage spaces and 350 spaces for auto parking.
“We strive to provide our clients with premier locations that can accommodate different building sizes and options in each of the markets we serve,” Nelson said. “Erlanger Commerce Center is a prime example of that strategy. The substantial square footage matched with its location and quality features and finishes will make this a competitive property.”
The property is located just a few miles from the Cincinnati/Northern Kentucky International Airport and is among one of the most robust interstate highway systems with convenient access to I-71, I-75 and I-275.
“This site has direct visibility and access to a major transportation corridor, at the intersection of I-75 and I-275,” Nelson said. “Its proximity to the Cincinnati metro area is ideal for any manufacturing or logistics tenant that is looking for an available and diverse labor pool.”
Last year, Hillwood started construction on a 992,640-square-foot Chicago-area distribution center and has developed four other properties totaling nearly 1.3 million square feet over the last two years in the Southeast market.
“Right now, vacancies are low. According to CBRE, the vacancy rate for Class A bulk buildings in the Cincinnati market is 2.9 percent,” Nelson said. “More importantly, large sites are incredibly scarce in this market, especially if you want to be close to the Cincinnati/Northern Kentucky International Airport.”