Newmark announced today that its client, Rooker Development, received approval from the Pasco County Board of County Commissioners on an incentive package that paves the way for the development of two new industrial warehouses. The project is expected to spark a new wave of economic growth and development and expand the county’s commercial tax base as part of a push to provide new job opportunities for county residents.
Newmark’s Senior Managing Director, Rick Narkiewicz, will represent the buyer, Rooker, in the sale of 90 acres of land. Rooker is purchasing the land from the Pasco County Board of Commissioners and was attracted to the site though the county’s “Penny for Pasco” initiative. The program provides critical funding for schools, road improvements, environmental programs, and public safety. The land sale is expected to close in Q2 2020.
Located between Interstate 75 and Old Pasco Road in Wesley Chapel, Florida, the land was previously set aside for residential and retail uses. Rooker plans to develop two 200,000-square-foot industrial warehouses. The pair of buildings will be the largest industrial buildings developed in the county and are expected to generate an annual payroll of $20.8 million.
“Pasco County has all the ingredients needed to become a new manufacturing and distribution hub, and we are pleased to partner with county leaders on their vision for a vibrant and multifaceted local economy,” said Cason Bufe, Vice President at Rooker. “We’re confident that by building these two warehouses, we will attract large industrial users who might have previously passed over the area due to lack of available space. By keeping jobs within its borders, Pasco County is positioned for growth and success in the decade ahead.”
According to Newmark’s 3Q19 industrial report, Pasco County currently does not have any industrial projects under construction, despite prices that provide a significant competitive advantage compared to rates in neighboring counties. More than 90,000 citizens commute out of Pasco County for work each day, representing a significant amount of unrealized revenue. In addition to new revenue streams that will be created through the influx of new jobs, the project is also expected to bring more than $1 million per year in reoccurring real estate tax revenue.
“This project is a game-changer for Pasco County,” said Newmark’s Narkiewicz. “There is currently very little industrial space to house a company where Pasco County citizens can work, so having two warehouses of this size will be extremely beneficial. We anticipate this will be the first of many new industrial development projects that will launch in Pasco County in the months and years ahead.”
The “Penny for Pasco” initiative was launched in 2012 after Pasco County citizens voted to create the new program by a more than 2-1 margin in a public referendum. Penny for Pasco has since provided critical funding for several key economic development programs that would not have moved forward had the funding support not been available.
“The visionaries who conceived the Penny for Pasco program can be proud of this new opportunity for key commercial facilities within the county,” said Stewart Gibbons, Co-Chairman of Penny for Pasco’s founding committee. “The quality, scale and economic benefits to the county with this land sale are exactly what many Penny for Pasco supporters would hope for. It was a pleasure to partner with Rooker and Newmark on the transaction, and we look forward to seeing this project come to fruition.”
Rooker is expected to close on the sale of the land in mid-2020 with estimated completion of the new warehouses in Q1 2021.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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