Crow Holdings Leases Entire Northeast Philly Warehouse

Crow Holdings Development found a tenant to take its entire spec warehouse development in Northeast Philadelphia and it’s lovin’ it.

Martin Brower agreed to lease the 147,000-square-foot industrial project at 14515 McNulty Road in Northeast Philly, the Philadelphia Business Journal reported. Terms of the lease were not disclosed.

Illinois-based Martin Brower claims to be the largest supply chain partner worldwide for McDonald’s. The company is owned by food and beverage distributor Reyes Holdings.

The warehouse, scheduled for completion next fall, includes 57,000 square feet of cold storage, an 8,500-square-foot office and a vehicle maintenance area. The property is strategically located south of several major highways, including I-95.

Dallas-based Crow Holdings purchased the 14-acre site earlier this year for $8 million from the Philadelphia Authority for Industrial Development. An official for the developer said the buildout for Martin Brower will cost an estimated $35 million to $40 million.

A CBRE team including Jonathan Springer and Andrew Green represented the tenant, while a Colliers team of Brad Boone and Brian McCurdy represented the landlord. THe site includes a 10-year agreement for payments in lieu of taxes.

Reyes is both an owner and tenant of industrial facilities across the country. Last year, the firm bought the 481,000-square-foot Richmond Distribution Center 3 in the Bay Area for $100 million.

While based in Texas, Crow Holdings developed more than 3.5 million square feet of industrial space in New Jersey and Pennsylvania in the past two years alone. Over the winter, the company closed a $3.1 billion value-add real estate fund, set to target multifamily and industrial properties.

The Philadelphia industrial sector is on the rise, recently seeing its property values exceed those of its multifamily counterpart for the first time, according to CoStar.

— Holden Walter-Warner