Dermody Properties Breaks Ground on LogistiCenter℠ at Pleasant Prairie

Rhea-AI Summary

Dermody Properties has commenced the development of LogistiCenter℠ at Pleasant Prairie, a state-of-the-art logistics park in Wisconsin. WestRock, a leader in sustainable packaging, has signed a build-to-suit lease for a 580,000-square-foot facility at the site. This new hub will serve the Great Lakes region with advanced manufacturing capabilities, aiming to enhance product quality and sustainability.

The logistics park, previously a power plant site, boasts unique power and water infrastructure, and is the only rail-served logistics park in Wisconsin. The development is expected to bolster local employment and the economy, with potential for future leases.

The project reflects Dermody Properties’ commitment to creating cutting-edge logistics solutions and WestRock’s strategic expansion to meet growing regional demand.

Positive

• Dermody Properties begins development on LogistiCenter℠ at Pleasant Prairie, creating Wisconsin's only rail-served logistics park.
• WestRock signs a lease for a 580,000-square-foot facility, enhancing its operations in the Great Lakes region.
• The new facility will feature state-of-the-art automation and sustainability measures to improve efficiency and customer satisfaction.
• Significant investment expected to boost local employment and economy.

Negative

• None.

News Market Reaction

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On the day this news was published, WRK gained 1.05%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

PLEASANT PRAIRIE, Wis., June 27, 2024 /PRNewswire/ -- Dermody Properties—a diversified private equity investment management company focused exclusively on the national logistics real estate sector—is pleased to announce that WestRock, a global leader in sustainable packaging, has signed a build-to-suit lease at LogistiCenter℠ at Pleasant Prairie. WestRock is establishing a Great Lakes regional corrugated operations hub and will require more than 580,000 square feet within Wisconsin's newest rail-served logistics park.

"We are pleased that WestRock is entrusting Dermody Properties to build its advanced manufacturing facility in southeast Wisconsin," said Neal Driscoll, Midwest Region Partner at Dermody Properties. "We could not have scripted a better partner to kick off the park, and we look forward to working closely with WestRock and the Village of Pleasant Prairie to complete what we believe will be a best-in-class project."

The Village of Pleasant Prairie sits at the southern doorstep of Wisconsin and has witnessed considerable expansion in the past decade as local companies have grown. Businesses have been attracted to the state's friendly business climate, availability of labor and high quality of living. LogistiCenter℠ at Pleasant Prairie—Wisconsin's only rail-served, build-to-suit logistics park—is part of Dermody Properties' growing portfolio in the thriving Midwest market.

WestRock announced in January 2024 that it would begin building a new corrugated box plant in Pleasant Prairie to meet growing demand from customers in the Great Lakes region.

"WestRock's new corrugated converting facility in Pleasant Prairie will use state-of-the-art automation and enhanced capabilities to improve product quality and customer satisfaction," said David B. Sewell, Chief Executive Officer of WestRock. "Efficient manufacturing operations generate less waste and reduce energy consumption, contributing to sustainability and further solidifying WestRock's position as the supplier of choice."

The logistics park was previously home to a power plant and sits adjacent to substations that can deliver unrivaled power capacity and provide freshwater service from Lake Michigan.

"Dermody Properties is committed to creating state-of-the-art logistics spaces for our customers, and we are proud to be collaborating with WestRock to fulfill that promise through this build-to-suit project," said Elizabeth Kauchak, Chief Operating Officer for Dermody Properties.

LogistiCenter℠ at Pleasant Prairie is a planned three-building logistics center that will total 2,384,765 SF of building space with flexibility to accommodate build-to-suits from 250,000 SF to 1.8M SF. This logistics facility offers Wisconsin's newest and only rail-served BTS site with unmatched power capabilities. Leasing opportunities are available.

Additional Quotes

Wisconsin Economic Development Corp.
"WestRock's reputation for innovation and sustainability makes it a perfect fit for Wisconsin," said Missy Hughes, Secretary and CEO of the Wisconsin Economic Development Corporation, the state's leading economic development organization. "We are pleased they are joining our thriving paper, packaging, and forest products sector, and we are excited by their move to Pleasant Prairie."

Milwaukee 7 Regional Economic Development Partnership
"We're delighted that WestRock is making a significant investment in southeastern Wisconsin," said Gale Klappa, Co-chair of the Milwaukee 7, southeastern Wisconsin's economic development organization and Chairman of WEC Energy Group. "As a leader in sustainable packaging, WestRock recognizes our region's rich manufacturing history and deep pool of talent. Today's groundbreaking demonstrates once again that southeastern Wisconsin is on a roll."

Kenosha Area Business Alliance
"We are thrilled to welcome WestRock to Kenosha County! When work began on redeveloping the We Energies power plant site, this type of project is exactly what community leaders envisioned," said Nicole Ryf, President of the Kenosha Area Business Alliance. "WestRock's decision to site its state-of-the-art corrugated converting facility in Kenosha County—the heart of the Milwaukee-Chicago corridor—speaks to the community's many competitive advantages including its strategic location, well-connected transportation networks and diverse industry mix."

Village of Pleasant Prairie
"The Village is excited that WestRock selected Pleasant Prairie for its new corrugated box plant and looks forward to seeing the highly anticipated development take shape," said Village Administrator Eric Rindfleisch. "The groundbreaking ceremony reflects the beginning of a significant investment in the community that will create jobs and benefit the local economy. We are pleased to welcome WestRock to our business community and look forward to seeing the company expand and grow in the new location."

About Dermody Properties
Dermody Properties is a privately-owned real estate investment, development and management firm that specializes in the acquisition and development of logistics real estate in strategic locations for e-commerce fulfillment centers, third-party logistics and distribution customers. Founded in 1960, Dermody Properties has invested more than $10 billion of total capital across all platforms nationwide, having acquired and developed approximately 110 million square feet of logistics and industrial facilities. In addition to its corporate office in Reno, Nev., it has regional offices in northern and southern California, Atlanta, Phoenix, Seattle, Chicago, Dallas, Indianapolis and New Jersey. For more information, visit Dermody.com.

About WestRock
WestRock (NYSE: WRK) is a global leader in sustainable paper and packaging solutions, with more than 50,000 teammates in the Americas, Europe and Asia-Pacific. Our integrated packaging capabilities offer end-to-end solutions to help customers address their greatest challenges.

Media Contacts:

Dermody Properties
Nicole Shearer, APR
Senior Director of Public Relations, KPS3
530-448-6485
nicole.shearer@kps3.com

WestRock
Robby Johnson, APR
Senior Manager, Corporate Communications, WestRock
470-328-6397
robby.b.johnson@westrock.com

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SOURCE Dermody Properties

FAQ

What is Dermody Properties' new project in Pleasant Prairie?

Dermody Properties has started developing LogistiCenter℠ at Pleasant Prairie, a state-of-the-art logistics park in Wisconsin.

What is the size of the facility WestRock will lease at LogistiCenter℠?

WestRock will lease a 580,000-square-foot facility at LogistiCenter℠ at Pleasant Prairie.

What makes LogistiCenter℠ at Pleasant Prairie unique in Wisconsin?

LogistiCenter℠ at Pleasant Prairie is Wisconsin's only rail-served, build-to-suit logistics park with unique power and water infrastructure.

How will WestRock's new facility impact its operations?

WestRock's new facility will enhance manufacturing efficiency, improve product quality, and contribute to sustainability goals.

What are the expected economic impacts of the LogistiCenter℠ project?

The development is expected to boost local employment and the economy in Pleasant Prairie.