Ivy Realty has lined up construction financing for the first phase of a large-scale logistics development next to Philadelphia International Airport, marking a significant step forward for new industrial supply in the area.
The developer secured a $153 million floating-rate construction loan to fund Phase I of the Airport Logistics Center, a planned logistics facility totaling 1.8 million square feet at full build-out. The project is located on a 66-acre site at 10 Industrial Highway in Tinicum Township, immediately adjacent to the airport.
The first phase calls for a single industrial building totaling approximately 1.05 million square feet. According to the developer’s plans, this initial building is slated for completion in early 2028, positioning it to serve future demand for large-format logistics and distribution space near one of the region’s key transportation hubs.
Ivy Realty is partnering with Lubert-Adler Real Estate Funds on the development. Lubert-Adler is participating as an investor in the project and is a co-borrower on the construction financing. The partnership structure aligns the developer and institutional capital on the initial phase while allowing for additional development on neighboring land.
The construction loan was provided by TPG Real Estate Credit, which supplied the floating-rate financing package for Phase I. The financing was arranged by Cushman & Wakefield on behalf of Ivy Realty and Lubert-Adler. A capital markets team led by John Alascio, Chuck Kohaut, TJ Sullivan and Aaron Graves advised on and structured the debt for the sponsorship.
Beyond the first phase, Ivy Realty controls an adjacent 40-acre parcel that has already been approved for an additional industrial facility of up to 750,000 square feet. This second phase would be developed separately but in conjunction with the overall Airport Logistics Center master plan. When both phases are completed, the project would comprise approximately 1.8 million square feet of industrial space across the combined sites.
The project site sits in close proximity to Philadelphia International Airport, which provides air cargo connectivity and regional access that are typically sought after by logistics, e-commerce and distribution users. While no tenants have been announced and specific leasing plans were not detailed, the scale of the first building and future expansion capacity underscore the sponsors’ focus on large-format industrial product.
Details on the loan’s term, amortization profile and other financial covenants were not disclosed. The article also did not specify projected rents, tenant mix or preleasing activity, leaving open questions around lease-up strategy and targeted end-users for the new warehouse space.
