Venture Breaks Ground on Massive Industrial Park in Suffolk, Virginia
According to Connor Adams at CoStar, "Rockefeller Group and Matan Cos. have broken ground on the venture's long-anticipated Port 460 project in Suffolk, Virginia, a development that at full build-out is expected to bring another 5 million square feet of industrial space to the market.
In partnership with Mitsubishi Estate New York, Taisei USA LLC and Japanese developer Chuo Nittochi, the venture plans to complete 2.4 million square feet across five buildings that will make up phase one of the development. The first two buildings, and the development's infrastructure, are expected to be completed by next year.
A second phase totaling 2.6 million square feet is set to be developed following the completion of phase one, according to a release from the companies. The team picked JLL in late 2022 to market the project.
"We are breaking ground on what will become one of the most impactful industrial developments in the country," JP Matan, director of leasing at Matan Cos., said in a statement.
One of the largest developments in the state, Port 460 is expected to serve U.S. and international businesses seeking direct access to the expanded Port of Virginia, the venture said. The development is projected to create 2,600 jobs during construction and potentially support over 9,000 jobs when fully built out, Gov. Glenn Youngkin added in a statement.
The Port 460 site is located at the intersection of Route 58 and Route 460 about 20 miles southwest of the Port of Virginia. In its filing with the city in 2022, Matan said the project would provide industrial services to the port, which processes more than 2 million containers a year.
"The opportunities at Port 460 can meet so many different requirements, ranging from advanced manufacturing, life sciences and logistics, to port operations and warehousing, further positioning the city of Suffolk and the southeastern part of Virginia as a hub for logistics and supply chain investment as well as domestic manufacturing and innovation," said Hilary Allard Goldfarb, senior managing director and head of development for Rockefeller Group in the mid-Atlantic.
For The Record
Gregg Christofferson and Kris Kennedy from JLL are handling the leasing of Port 460."
The Port 460 project in Suffolk, Virginia, with its anticipated 5 million square feet of industrial space, is poised to have a significant impact on local property taxes. As this large-scale development progresses, it will bring substantial growth to Suffolk's industrial base, driving up the taxable value of commercial real estate in the region.
1. Increase in Property Tax Revenues:
The introduction of such a massive industrial park will inevitably increase the value of surrounding properties. As a result, Suffolk can expect an uptick in property tax revenues. This is particularly notable in an industrial development of this magnitude, where land use changes from undeveloped or underdeveloped to high-value industrial use. The addition of modern infrastructure, port logistics services, and warehousing facilities directly boosts property values.
2. Support for Public Services:
With the increase in taxable property comes the need for expanded public services, including road maintenance, utilities, and emergency services to support the influx of workers and businesses. The increased property tax base can provide critical funding for these services without the need to drastically raise tax rates for local residents, thereby benefiting the entire community.
3. Long-Term Economic Growth:
As the development attracts businesses and workers, the city could see increased demand for housing and services, further expanding the taxable property base in both commercial and residential sectors. Additionally, the projected job creation (9,000 jobs) would stimulate spending, indirectly driving up local property values and boosting other tax sources like sales and income taxes.
Overall, the Port 460 project will lead to increased property taxes due to higher valuations of developed industrial land, which, in turn, will fund necessary infrastructure and public services to support the region's economic growth. It creates a positive feedback loop, whereby Suffolk can reinvest in the area to attract even more business and industrial activity.