DP Partners, a member of Dermody Properties, has announced the completion of a new corporate headquarters and distribution center for Penn Jersey (PJP). The project in Northeast Philadelphia is designed to be LEED Silver Certified and has allowed PJP to remain within the City of Philadelphia rather than relocating outside the region, retaining 250 jobs in the City that will benefit the regional economy. The new facility will also allow PJP to expand its operation in the future, creating even more jobs.
In addition, 230 construction jobs were created since the project began in June 2010, and the project contributed an estimated $51 million in direct and indirect economic benefits to the region. DP Partners anticipates the facility will receive the official LEED Silver Certification by summer.
The new 255,336 square foot facility, located on 30 acres of land at 9355 Blue Grass Road, is owned by a joint venture comprised of Dermody Properties and Boston-based Great Point Investors LLC.  DP Partners represented the joint venture in the transaction. PJP signed a 15-year lease for the facility and will begin operations in the new location on May 17, 2011.
“Keeping Penn Jersey in Philadelphia is a great indicator of the City’s economic vitality, and DP Partners was honored to be able to play a role in keeping those jobs here,” said Stephen G. Bailey, DP Partners’ Eastern Region Partner. “Our team is proud to have worked with PJP, PIDC and the City to turn a very challenging land site into a state of the art distribution facility that will allow PJP to efficiently serve their customers and expand as the company continues to grow.”
“I am delighted to celebrate the completion of Penn Jersey’s new headquarters, which will keep hundreds of jobs in the city. I want to thank PIDC for being such an important partner by working with Penn Jersey, a family-owned business, and helping them to expand in Philadelphia,” said Mayor Michael A. Nutter. “Philadelphia is a growing city and more and more businesses know this is a smart city to locate.”
The new location is more than 75,000 square feet larger than PJP’s current facility on Red Lion Road in northeast Philadelphia and is the first new facility for PJP since the company started in 1963. PJP is a fully integrated distributor of packaging, paper, janitorial chemicals, restaurant equipment and supplies. The company carries more than 8,500 items, including many leading national brands and serves customers throughout the nation’s northeast region from its Philadelphia location.
DP Partners and PJP worked with the Philadelphia Industrial Development Corporation (PIDC) to identify the land site on which the PJP facility would be built. PIDC is a private, not-for-profit Pennsylvania corporation that promotes economic development and job creation; it manages the acquisition, development, and disposition of industrial and commercial land in strategic locations throughout Philadelphia on behalf of the City.
The site is part of Pennsylvania’s Keystone Opportunity Zone (KOZ), which provides tax abatements and other incentives for 10 years from the date of occupancy by a qualified tenant.
"Congratulations to DP Partners and Penn Jersey on the completion of their magnificent facility, which clearly exemplifies Philadelphia's competitive location, infrastructure, and workforce for the warehouse and distribution industries," said Peter Longstreth, President of PIDC.
“PJP has seen steady growth over the last 48 years, and this new facility will enable us to better service our existing customers and position our company for future growth,” said Tom Furia, Jr., President and Chief Operating Officer of PJP. “We credit the City of Philadelphia and PIDC for working with us to retain 250 jobs in the City, and DP Partners for their strategic approach to the development of the project on a site that will allow us to expand our operations and create even more jobs.”
In addition to Bailey, the Dermody Properties development team includes Matthew Marshall and James V. Mascaro, LEED AP, of the DP Partners Eastern Regional office, and John Atwell, Chief Operating Officer.
“I’m very proud of our Eastern Region office for its continued high level of service to our customers,” said Michael Dermody, Chairman and CEO of Dermody Properties. “Penn Jersey is a great company, and we’re proud to provide them with this new facility. I’d particularly like to recognize the teamwork between the City of Philadelphia, PIDC and our partner Great Point on this project. In this economy, true teamwork is how things get accomplished.”
“This project combines all of the elements which we look for in an investment: solid returns, a quality partner in Dermody Properties, and a market-leading customer in Penn Jersey,” said Joseph Versaggi, Principal of Great Point. “This is our third industrial transaction with Dermody Properties in a relatively short time, and we continue to be strongly supportive of that relationship.  We also remain committed to investing in the Metro Philadelphia region.”
PJP was represented in the lease transaction by the Philadelphia-area CB Richard Ellis brokerage team of Steve Marzullo, Senior Vice President of Investments; Patrick Green, Executive Vice President; and Michael Mullen, Senior Associate. Blue Rock Construction was the general contractor for the project.