Griffin Land, the real estate business of Griffin Land & Nurseries, Inc. (Nasdaq: GRIF), reported Tuesday that the company expects to sign a full building lease at its new, 228,000 square foot warehouse facility in the Lehigh Valley of Pennsylvania that was completed in the latter part of fiscal 2012.
Frederick M. Danziger, Griffin’s Chairman and Chief Executive Officer, said that if the lease comes through as planned, Griffin plans to obtain a mortgage loan on that building and use the mortgage proceeds to build a second building on the same Lehigh Valley land parcel.
The second building would contain approximately 300,000 square feet.
In 2010, Griffin purchased a warehouse at 871 Nestle Way in Allentown, PA and 51 acres of land for development, the latter of which has become the Lehigh Valley Tradeport, which is where the company planned to develop these two buildings on spec.
In 2011, Griffin reported that it had broken ground on the first of the two buildings, which were designed to feature 32 foot clear-heights with abundant car parking as well as extra trailer parking along the entire length of the 300,000 square foot building. This larger building will also have rail access to a Norfolk Southern line.
Griffin Land has also purchased a second site in the Lehigh Valley of Pennsylvania that is expected to support two buildings aggregating slightly more than 500,000 square feet. Danziger reported Tuesday that the permitting for these two buildings is underway and is expected to ultimately be approved.