Hanover Direct puts 640,832-square-foot distribution center in Roanoke County on the market
- July 9, 2012
As it winds down operations in Roanoke County, Hanover Direct, a New Jersey-based catalog and e-commerce company, has put its massive industrial distribution center on the market. The 640,832-square-foot facility on 56 acres at 5022 Hollins Road in Roanoke County has been listed at $12.8 million, or about $20 per square foot.
The listing on the fulfillment center comes on the heels of Backcountry.com’s decision to build a $20 million, 316,000-square-foot distribution center in Christiansburg. The online retailer of outdoor gear plans to open that center in August. The availability of another large property gives the region a chance to build on efforts to position itself as a hub for distribution with its close proximity to Interstate 81.
“This property represents one of the preeminent industrial facilities available for sale in the United States, and it presents a real opportunity for the commonwealth of Virginia and our community to expand employment and economic growth,” Dennis Cronk, president and CEO of Poe & Cronk Real Estate Group in Roanoke, said in a statement. Hanover Direct awarded Poe & Cronk the disposition agreement to sell the property.
An employer in the region since the early 1990s — with peak employment reaching nearly 200 jobs — Hanover Direct is in the process of outsourcing its fulfillment business to GSI Commerce. About 60 jobs will stay in Virginia at a GSI facility in Martinsville, while others will go to other locations, according to Matt Huff, a commercial broker for Poe & Cronk.
Built in 1994, and later expanded in 1997, the distribution center offers a 37-foot clear ceiling height, utilities and cafeteria. It’s located about three miles from I-81 and the Roanoke regional airport. The site is not served by rail.
“We’ve had a lot of interest in it,” says Huff. “We’re trying to leverage the Backcountry.com announcement as much as we can. It’s a good spot for distribution, because of where we’re located. Roanoke offers one-day shipping to two thirds of the U. S. population.”