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BETHLEHEM, PA-Keene, NH-based C&S Wholesale Grocers Inc. has signed leases for more than one million sf of distribution space at DP Partners’ LogistiCenter at Allentown here. The agreements include a 621,600-sf newly completed build-to-suit and 388,381 sf in an existing, 594,923-sf spec distribution facility.

LogistiCenter at Allentown is a two-building, $55-million complex, located here on Hanoverville Road within the northeast corridor extension of the Pennsylvania Turnpike. It is owned and was developed by Reno, NV-based DP Partners. The two leases take occupancy in the complex to 100%. Hopkins Distribution Co., a Reno-based third-party logistics supplier, leases the other 206,542 sf in the initial building.

Edward Dudzinski and Richard Greenberg of Bridgewater, NJ-based Atlantic Real Estate Services represented C&S in the lease negotiations. Michael J. Alderman, director of leasing at DP’s mid-Atlantic regional office in Harrisburg, represented the owner, working with Stephen G. Bailey, mid-Atlantic regional director; James V. Mascaro, development manager, and Kevin Young, facilities manager.

The aggregate value of the leases is undisclosed. Alderman could not be reached by deadline. However, 18 months ago when the construction of this building completed, he told GlobeSt.com the asking rent rate for the initial spec building was $4.35 per sf, and prices were rising. A second-quarter 2006 report from the Philadelphia office of CB Richard Ellis puts the average asking rental rate for industrial space in the Lehigh Valley at $4.16 per sf.

Earlier this year, Gov. Ed Rendell provided C&S with nearly $1.8 million in state incentives, including grants, tax incentives and job training credits. LogistiCenter at Allentown is a designated Foreign Trade Zone, which also saves tenants money on international cargo shipments. C&S is expected to create 400 new jobs at the facility over the next three years.

The C&S agreements for this center follow a separate transaction in which the company renewed a lease for 770,000 sf at 100 Quality Circle in DP’s Blue Mountain Logistics Park in Harrisburg. A CBRE report on Central Pennsylvania industrial rent rates puts the asking average in that area at $3.99 per sf.

The privately owned C&S provides volume-purchasing, warehousing and distribution services to numerous grocery-store chains, independent grocers and military bases. Among them are Safeway, Giant Food Stores and A&P Food Mart.

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