CRG has formed a joint venture with PCCP to develop The Cubes at Alpha, a 575,900-square-foot industrial park in Alpha, N.J. The team expects completion in the third quarter of next year.
PCCP paid $24.8 million for the 37-acre site in August and Simmons Bank issued a $55.8 million construction loan last month, Warren County public records show.
Clayco, CRG’s parent company, will provide design-build services while Lamar Johnson Collaborative served as the project’s architect. The owners are aiming to accommodate e-commerce, distribution, 3PL and manufacturing uses.
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The park is slated to include two buildings measuring 270,900 square feet and 305,000 square feet. Each facility will feature 56- by 49-foot column spacing, 60-foot speed bay, 36-foot clear heights and truck court depths of 185 feet.
The Cubes at Alpha will have a combined 105 dock doors, 50 of which will be equipped with mechanical levelers and seals, as well as four drive-in doors. Parking will consist of 500 car and 99 trailer spots.
The development is at 0 Standard St., which will allow for immediate access to Interstate 78. Downtown Allentown, Pa., is roughly 24 miles southwest, while The Port Authority of New York & New Jersey is some 60 miles east.
Including The Cubes at Alpha, CRG has planned, broken ground on, or delivered more than 53 million square feet of industrial developments across the U.S. The developer wrapped up construction on another Cubes-branded project earlier this year. Dubbed The Cubes at French Lake, the 1 million-square-foot Class A facility debuted in Dayton, Minn.
New Jersey’s industrial pipeline dwindles
New Jersey’s industrial pipeline is not what it used to be, with just 7.7 million square feet underway as of September, according to a report by Cushman & Wakefield. This was down from 9.8 million square feet last year and 13.7 million square feet in 2022.
Industrial deliveries, on the other hand, were robust. Developers brought online 1.9 million square feet in New Jersey during the third quarter, bringing the year-to-date through September total to 9.6 million square feet, the report shows. An additional 3 million square feet are expected to hit the market by year’s end.
Since 1.6 million square feet of the newly constructed space remained unoccupied, the market’s industrial vacancy rate grew by 60 basis points quarter-over-quarter and clocked in at 7.7 percent in September, the same source reveals.