New York real estate firm expands industrial footprint in Wilmington
WILMINGTON — A family-owned real estate acquisition company recently found success in the Cape Fear market. Treeline announced its first signed lease in an industrial park it purchased last month.
Located on US Highway 421, it joins Edgewater Ventures, Ramm Capital, CIL Capital LLC which also recently announced investments or expansion in regional industrial development.
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Hearing of “explosive growth” in Wilmington, Treeline’s management team decided to consider expansion after investing in Northeast commercial real estate for 37 years.
“So many northerners are moving there full-time,” said Daniel Schor, Treeline’s director of business development. “We looked at the stats and the biggest influx to Wilmington is from New York.”
Last month, Treeline purchased the 80-acre industrial site at 2830 US Highway 421 from OmniSource LLC. Treeline plans to invest $18 million in redevelopment and future growth.
Wilmington-based Burgess Corporation was hired to manage construction. The company will rehabilitate an existing 115,000 square foot building and add several new industrial structures to its footprint.
Renovation work and necessary demolition should begin within 30 days, Schor confirmed.
“We have a committed tenant, so we are moving forward to get them in quickly,” he added.
The tenant is a national distributor whose name has not yet been communicated. It will occupy 36,000 square feet of the existing facility, leaving room for other businesses.
Treeline will then construct additional buildings in “successive order”, but at this time it is not sure how many it will accommodate. Many interested parties want a custom build, Schor said, and those will get priority. Other tenants can replace as long as there is space available.
Schor explained that the industrial park will be a Class A facility and will attract various businesses due to its proximity to major highways and ports.
The recent acquisition adds to Treeline’s local portfolio, which includes two other properties closing in fall 2021. Both are located within one mile of the Treeline Industrial Park.
Three tenants are currently renting space in neighboring properties. South-Tek Systems occupies the 66,000 square foot building, which has been retrofitted by Treeline. The company also worked with Burgess to build a new 44,000 square foot facility, which now houses Mid Atlantic Roofing and Aprinnova Inc., a California-based cosmetics company.
Treeline was started in New York as a family business in 1985, so the bulk of its business takes place in New York City, as well as downtown Brooklyn and surrounding suburbs.
It currently owns and manages 6 million square feet of assets.
The business expands further in the Carolinas. It currently has a contract to also acquire two industrial development sites in South Carolina.
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