Newburgh warehouses add to steady development in Orange County – Times Herald-Record

TOWN OF NEWBURGH - A New Jersey developer with four warehouses in Orange County is addingtwo more to its stock, across from the Newburgh Mall.

One of the new Matrix Development Group buildings will be 927,041 square feet, andthe other will be 215,200 square feet. Both will be built on a 90-acre property at thecorner of Route 300 and Interstate 84, near Matrix's other warehouse by Stewart Airport.

Developers will use local labor on the construction, which is alreadyunderway.

This new project is one of the latestin a steady stream of warehouse proposals that have come to Orange County since2019.

Currently, some 40 warehouse projects are in the works or in the planning stages, saidAlan Sorensen, the county's planning commissioner.These includenew construction and expansions.Some are undergoing lengthy environmental reviews and approval processes, he noted.

Most of the Orange County warehouse projects are locatedin the village of Goshen, and towns of Wawayanda, Montgomery and Wallkill.

Walgreens is considering leasing the smaller warehouse for a micro-fulfillment centerin one half and subletting the other half, according to a presentation at the Orange County Industrial Development Agency's Jan. 19 meeting.

A determining factor for Walgreens moving in will be if it gets asales tax exemption for the cost of specialized robotics needed at the site, according to paperwork filed with the IDA.

Gary Hans, head of acquisitions at Matrix, based in Cranbury, New Jersey, said in an interview on Jan. 14 he wasn't worried about not immediately having tenants for the project.

"We're confident enough in the market that we think both buildings will probably be leased before we're done constructing them," Hans said.

He expects construction to wrap by the end of the year or early 2023, depending on weather and supply issues.

Matrix estimates the project could produce 300-500 temporary construction jobs and 300-400 permanent jobsonce it is finished.

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Newburgh Supervisor Gil Piaquadio isn't thrilled with the warehouse plans, but is not entirely opposed to them either.

"That particular location on Route 300I always felt would be our retail area," Piaquadio said. "And it pretty much is." He acknowledged that attempts to further the retail landscape have not been successful."So, we'll have to live with the warehouses," he said.

Past efforts to turn the land into another mall have failed. Waterstone Properties Group originally pitcheddevelopingitinto a bustling town center with 700,000 square feet of retail space. It later tweaked its plans by scaling backtheretail to 275,000 square feet, but still could not fulfill the retail leases, Piaquadio said.

"Right now, everybody's buying so much online that it's created such a need for these warehouses and retail stores are really being shorted,"Piaquadiosaid.

In some of Orange County's more rural communities, warehouse development has roused locals.

"The problem I have is that the infrastructure doesn't exist to take care of this business correctly," said Chris Miele,president of Concerned Citizens of the Hudson Valley.

That's true in Hamptonburgh, Miele said, where New Jersey-based Real Deal Management is building warehouses. But Miele said the small hamlet doesn't have the services or facilities to support this industry.

"We don't have parking spaces. We don't have hotels ... We don't have repair shops. When a truck breaks down, we don't even have enough tow trucks that are big enough to tow a tractor-trailer.And we have all these low underpasses," Miele said.

But the Matrix site in Newburgh is"actually not a terrible, horrible location for a warehouse" because the area is already industrial, Miele said.

Matrix, which develops, ownsand operates office, residential, hospitalityand industrial properties, has developedmore than 40 million square feetin New Jersey, Pennsylvania and New York, including 5 million square feet in the past five years in Orange County and Staten Island.

When the Newburgh buildings are finished, Matrix will have about 2.7 million square feet of warehouse space in Orange County, Hans said.

Another New Jersey developer, Real Deal Management (RDM Group), had as many as 19 pending plans for warehouses in Orange County last year.

Development has been steady since before the pandemic, said Sorensen, Orange County's planning commissioner,and he sees that continuing for the foreseeable future.

E-commerce has boosted demand for warehouses, Hans said, but there are many other reasons to develop here.

While some of this growth can be attributed to local stores' need for extra storage, it is perhaps the region's access to major roads (Route 17, the Thruway, Interstate 84) thatis key, according to Hans and Orange County'sSorensen.

"One-day travel time from Orange County, they (drivers) can cover all of New England," Hans said. "They can get to Toronto and Montreal.They can go as far west as Detroit and Indianapolis and as far south as Charlotte."

And while warehouse development is booming, Miele believes that Orange County needs to further diversify economic development.

Miele pointed to the county's growing film industry, noting that it employs various types of local labor, including carpenters, painters, artists,and pumps money into hospitality businesses.

"They (economic develop agencies) are taking advantage of a good, solid roadway system, but they're not taking advantage ofeverything else the area has to offer, which are beautiful rolling hills, beautiful vistas, great tourism potential, smaller or at-home type industries or service industries," Miele said.

lbellamy@th-record.com

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Newburgh warehouses add to steady development in Orange County - Times Herald-Record