Though Peapod had considered a site in New York for its new distribution center, the online grocery seller has signed a long-term lease for 345,000 square feet of industrial space in Jersey City, moving forward on a $34.6 million Urban Transit Hub incentive it was awarded in May to open the facility in New Jersey and create 380 jobs for the state.
Peapod, a subsidiary of Ahold USA Inc., will roughly split 740,000 square feet of warehouse space in the planned 880,000-square-foot Pulaski Distribution Center with Imperial Bag & Paper Co., which was approved for a $29.1 million Grow New Jersey tax credit by the New Jersey Economic Development Authority in August.
According to Robert C. Kossar, executive managing director for Jones Lang LaSalle, which represented property owner Prologis in the lease transactions, "both companies went through an exhaustive process looking at properties close to New York because their businesses require them to be right on top of Manhattan, but a building like this flat out doesn't exist this close to New York City anywhere else."
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