Jersey City's Greenville Yards marked for distribution centers. (New Jersey).

Keystone Property Trust announces construction is on schedule at the company's Greenville Yards development in Jersey City, N.J. Keystone acquired the 26-acre site in September of 2002 and is constructing two state-of-the-art distribution centers, totaling approximately 525,000 SF of industrial space.

The two buildings currently under construction will encompass a 181,895 SF distribution center with 24 truck bays and a 342,574 SF distribution center with 48 truck bays. Steel has risen at the site with expected completion of the first facility by the end of the second quarter of 2003 and the second facility by the yearend. This 'smart growth,' brownfield redevelopment will be among the few new state-of-the-art distribution centers in the port area, offering large footprints, 36-foot clear ceilings, ESFR sprinkler systems, and immediate access to rail systems and cross-dock capabilities. Furthermore, the site has the ability to accommodate drop-lot trailer parking for up to 100 trailers.

John DiCola, senior vice president of investments with Keystone Property Trust, stated, "Greenville Yards represents one of the best new industrial opportunities in Northern New Jersey. With limited new supply in the high-cube product in both the Port and the Meadowlands, demand remains significant for these quality new facilities. The development of these market-leading assets represents Keystone's continued investment in maintaining its leadership position in New Jersey's industrial market, which is one of the strongest in the country."

Situated adjacent to the Port of Newark/Elizabeth, the property is the second largest container port in the United States. Greenville Yards is located off Exit 14A of the New Jersey Turnpike and offers quick access to Manhattan via the Holland Tunnel, as well as the Newark Liberty International Airport and adjacent seaports. In addition to the centralized location, the site is situated within a federally designated foreign trade zone, as well as in a state-designed urban enterprise zone.

The property is the last development parcel of a roughly 200-acre site that was once owned by Conrail and used as a train switching station through the early 1980s. The Port Authority redeveloped about 110 of these acres for such uses as Tropicana's Northwest distribution center and BMW' s car preparation facility. The Port of Newark/Elizabeth marine terminal has approximately 300 acres devoted to vehicle importing/exporting and processing.

Beginning in 2000, the Port Authority began a massive capital improvement program to ensure that the port remains a world-class shipping destination. In 2002, more than $220 million was invested to dredge key harbor channels and improve ship-to-rail. The dredging project deepened the main shipping channels in the New York/New Jersey Ports, the Kill Van Krull, and Newark Bay Channels, to 45 feet. This expansion allows the Port of New York/New Jersey to capture a substantial portion of China and Southeast Asian cargo from West Coast ports by 2020. In addition, the improvement program has added more unloading capacity through state-of-the-art container cranes, built on-dock rail facilities, enhanced security measures, upgraded roadways and utilities, and renovated warehouses around the port.

Colliers Houston & Co. serves as the exclusive leasing agent for Keystone Property Trust's Greenville Yards development.