FreezPak has Suffolk plans
Cold storage company announces $77.5M expansion
A New Jersey logistics company plans to spend $77.5 million to construct a Suffolk facility to serve the mid-Atlantic — a move expected to create 80 jobs.
FreezPak Logistics intends to expand to the city with a 245,000-square-foot cold storage facility in Northgate Commerce Park, Gov. Glenn Youngkin announced Thursday.
“All of FreezPak’s products will go through the Port of Virginia, a logistical advantage that will increase efficiency and increase its direct access to markets,” Youngkin said.
The facility will be the first Virginia location for FreezPak, according to its website. Operating since 2001, the company operates cold and dry storage facilities for items such as fruits, vegetables, seafood, meat and dairy.
Dave Saoud, co-founder and CEO of FreezPak Logistics, thanked Youngkin’s office for securing development incentives, which he said was a key factor in choosing Virginia. The state competed with Georgia and North Carolina for the project.
Youngkin approved a $175,000 grant from the Commonwealth’s Opportunity Fund for the project. The company is eligible to receive benefits from the Major Business Facility Job Tax Credit program and the Port of Virginia Economic and Infrastructure Development Zone Grant Program. FreezPak is also eligible for funding and services from the Virginia Jobs Investment Program.
Warehouse development in Suffolk related to the Port of Virginia has led to several recent expansion projects. Dutch company ESKA announced plans to move its Chesapeake facility to Suffolk and expand in part due to port infrastructure investments, Virginia Port Authority CEO and Executive Director Stephen Edwards said. A massive 5 million-square-foot warehouse project called the Port 460 Logistics Center is also planned along the intersection of U.S. 460 and 58.
Due to Port of Virginia investments and success, industrial real estate had another good year in 2023, Gregg Christoffersen, industrial market lead for Jones Lang LaSalle, said during the Old Dominion University Real Estate Market Review and Forecast on Wednesday.
Demand for industrial space continued to outpace supply, and the 2023 overall vacancy rate for Hampton Roads was around 2.1%, according to the ODU report. Rent costs for industrial properties also climbed 8.5% over the past 12 months.