Target plans to build a distribution center in New Kent to serve its network of stores. (Image courtesy Target)
Editor’s note: This story has been updated with details from a New Kent County announcement that was made after publication.
A major retailer has bought into a large industrial park taking shape just east of Richmond.
Target recently acquired 164 acres in the New Kent City Center development in the western part of New Kent County.
The Minneapolis-based retailer purchased the site for $32.9 million from an LLC tied to Scannell Properties, a real estate developer out of Indianapolis, according to the deed filed in New Kent courthouse.
Target is planning to build a 1.4 million square foot distribution center on the site, and expects to start the project by the end of the month, according to a New Kent announcement about the project made Tuesday morning.
The county stated that the project would create “hundreds” of jobs and would be Target’s fifth distribution facility in Virginia.
The company didn’t respond to a request for comment Monday.
Target would join fellow retailer AutoZone in the 1,600-acre, mostly undeveloped industrial park south of Exit 211 on Interstate 64 and between Emmaus Church and Olivet Church roads.
Target’s acquisition occurred the same day as a transaction in which Scannell acquired the 164 acres for $7 million from SPF Investments, an LLC tied to local developer Fred Shaia. Scannell then sold the land to Target for nearly five times what it cost the firm to acquire. The deals took place in late February and were recorded with the county last week.
The land was a portion of a 613-acre parcel, the remainder of which is still owned by Shaia. The property’s assessed value is $7.1 million, online land records state.
Scannell didn’t respond to an email seeking comment.
AutoZone’s 800,000-square-foot distribution facility at 7360 City Center Court is now operational, following its groundbreaking in 2022. The project was the first to open at the industrial park and is on the northern end of the development.
Last year, Maryland-based developer Matan Cos. spent $15 million to acquire nearly 300 acres around the AutoZone facility. Matan is planning to build up to 2 million square feet of industrial warehouse space across several buildings, and clearing has started on the site.
New Kent’s greatest asset for economic development is I-64, the “pipe”between Richmond and Hampton Roads, two of the three largest population centers in the Commonwealth.64’s widening to six lanes has been a catalyst for national industrial developers to move east of Richmond where they’ve found large stretches of land accessible to these populations, conducive to logistic center development and relatively inexpensive. It’s also fairly flat and easier to pan than the hilly shale land west of Richmond. I’m glad to see this area diversify its economy because it’s going to need to be a future housing base for the employment… Read more »