A new industrial project is planned for Spartanburg County’s Highway 101 corridor near BMW Manufacturing Co.
PCCP LLC, a real estate and investment management firm, and Panattoni Development Co. announced Monday they have formed a joint venture to develop two Class A industrial warehouses totaling 373,320 square feet.
The project will be on almost 40 acres at the northeast corner of Apple Valley and Boiter roads in Duncan, according to a site plan provided by both companies.
Construction will include a 196,000-square-foot building parallel to Apple Valley Road in front of a 177,320-square-foot facility situated perpendicularly to Boiter Road.
Project officials said grading will begin at the site on Wednesday, Oct. 4, with the completion of the project anticipated by mid-2018.
Financial details of the project were not disclosed.
“With this latest project, PCCP and Panattoni will have partnered on development of nearly 3 million square feet of industrial product across the country,” said John Randall, managing director with PCCP, in a statement. “Based on the local market fundamentals as well as leasing activity to date and significant interest from area users, we believe this development will be another successful joint venture that will help meet warehousing demand in the region.”
PCCP and Panattoni said they have pre-leased the smaller of the two buildings to a “sequencing and logistics services provider to automotive manufacturers.”
The company declined to comment and asked not to be revealed until its plan for the facility was solidified.
PCCP and Panattoni said they have enlisted CBRE and Broadstreet Partners to provide brokerage services for the remaining space.
Property records showed Spartanburg Industrial Owners LLC purchased the site at 231 Apple Valley Road on Sept. 27 for about $1.5 million.
“We are excited to close on another project with PCCP,” said Dayne Pryor, a partner with Panattoni, in a statement. “Together we plan to deliver these next two buildings to serve a growing need in the region. With this new project, Panattoni now has over 4.3 million square feet underway in the Greenville-Spartanburg region.”
Panattoni is the developer of Michelin North America’s $270 million, 3.3 million-square-foot distribution center on 460 acres near the intersection of Highways 101 and 417 about 5 miles south of the joint venture site.
“It’s very exciting,” said Spartanburg County Councilman David Britt. “It’s another development leg that says great things about Spartanburg and the Highway 101 corridor.”
Sources familiar with the project said the PCCP/Panattoni site will be the southernmost development on Highway 101 that will have access to and utilize existing sewer utilities.
Local leaders said the project will add momentum to the county’s efforts to extend sewer services along the corridor in hopes of stimulating growth similar.
“We see a lot of similarities between the Highway 290 corridor and what’s going on along Highway 101,” said Carter Smith, executive vice president of the Economic Futures Group. “This is something that will help stimulate utility improvement, which is something we need in that area.”
Founded in 1998, PCCP said it has more than $7 billion in assets under management on behalf of institutional investors, and operates offices in New York, San Francisco, and Los Angeles.
Since its inception in 1986, Panattoni said it has grown into one of the largest privately held full-service development companies in the world. With 24 offices in the U.S., Canada, and Europe, the company said it has developed more than 266 million square feet of space, including more than 88 million square feet of build-to-suit projects.