MILLSTONE – Construction has begun on a 1.2-million-square-foot industrial complex in Millstone Township at the site of the former Showplace Farms horse training and rehabilitation facility on Route 33.
The Millstone 8 Logistics Center began construction on July 19, according to a press release from the project’s development partnership. The project is being constructed on a 140-acre lot at 505 Route 33, on the eastbound side of the state highway.
Crow Holdings Industrial is the lead developer of the complex and the Carlyle Group and 2020 Acquisitions are partners.
According to the press release, the complex will have two warehouses. One warehouse will be 1 million square feet in size and the second warehouse will be 220,000 square feet in size.
Construction is expected to be completed by the second quarter of 2022, according to the press release.
“The Millstone 8 Logistics Center will meet a rapidly accelerating demand for modern logistics facilities in the northeast, providing one of just a few options for tenants seeking occupancy of a 1-million-square-foot building,” Clark Machemer, the senior managing director at Crow Holdings Industrial, was quoted as saying in the press release.
“The improvements made to the Exit 8 interchange associated with the widening of the New Jersey Turnpike (in East Windsor) have made access to the property extremely efficient for industrial operations. Overall, this property will be a very attractive location for tenants seeking cutting-edge industrial space across the region,” Machemer said.
The Millstone 8 Logistics Center is being built on the former site of Showplace Farms, which closed in 2015.
Following the closure of Showplace Farms, Showplace Farms, LLC, maintained ownership of the lot.
According to the press release, the Millstone 8 Logistics Center development partnership acquired the property in April after obtaining the purchase rights from Seth Gerszberg of Active Acquisitions, the initial developer on the project. The development partnership’s acquisition was completed in May.
The development of the Millstone 8 Logistics Center is part of a settlement agreement among Millstone Township, the Fair Share Housing Center and Showplace Farms, LLC, regarding the municipality’s affordable housing obligation.
Showplace Farms, LLC, was an intervenor in Millstone’s affordable housing litigation. The property’s owner at the time, Howard Schoor, previously sought to have Toll Brothers develop hundreds of market rate units and affordable housing units on Route 33.
With the settlement agreement in place, Schoor agreed to have the planned residential development at Showplace Farms be replaced by the Millstone 8 Logistics Center.
A residential development with market rate units and affordable housing units will instead be developed in Millstone Township at 711 Perrineville Road (Route 1), near Etra-Perrineville Road (Route 571) and the border of East Windsor.
The Millstone Township Planning Board granted preliminary and final major site plan approval for the logistics center at the former Showplace Farms property in late 2020.
Municipal officials have said the project will generate $1.9 million in affordable housing fees, although no housing will be built at the Route 33 site, and add revenue to Millstone Township’s tax base.
“New Jersey remains one of the strongest industrial markets in the country and developable land in proximity to the New Jersey Turnpike has become increasingly hard to find,” 2020 Acquisitions CEO Efrem Gerszberg said.
“With the e-commerce evolution, there is growing demand for distribution facilities with entitlements in hand and we look forward to realizing our vision for the property in the near future,” Gerszberg said.
“Carlyle has been actively investing in the logistics space for years where we continue to see strong industry tailwinds,” said Michael Gershenson, managing director of the Carlyle Group. “We look forward to partnering with Crow Holdings and 2020 Acquisitions in developing this world class facility where we see significant value creation potential.”