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July 23, 2021 Deal Watch Today

$50M multi-warehouse project planned in Windsor 

A site plan where Scannell Properties plans to build two separate Windsor distribution centers at 1190 Kennedy and 451 Hayden Station roads.

Scannell Properties, one of the most active developers of warehouse buildings in Greater Hartford, is eyeing its latest new development in familiar territory. 

The Indiana-based company has gained local approval to build two new warehouses in Windsor with a combined 487,200 square feet on 40.8 acres, at 1190 Kennedy and 451 Hayden Station roads.

The approximately $50-million project, known as the BDL Logistics Center, is still waiting for state approval before it breaks ground, potentially by Oct. 1, according to Daniel Madrigal, Scannell’s senior development manager.

Both buildings are being developed on spec, which means no tenants are currently lined up for the properties. Spec construction is rare in Connecticut, but Scannell has used that strategy in the past, including a facility it built in Cromwell a few years ago. 

Daniel Madrigal, Senior Development Manager at Indianapolisbased Scannell Properties

Madrigal said the project is being spurred by continued hot demand in the warehouse and distribution space. Scannell typically targets Fortune 500 companies as tenants, he added.

The land for the project is currently owned by  O.J. Thrall Inc., the centuries-old farming company. Madrigal said Scannell plans to finalize a purchase of the land before it breaks ground later this year. 

One building will be 268,000 square feet and the other about 219,000 square feet. 

Scannell is not pursuing a tax break deal from the town, Madrigal said. 

Scannell is also the developer of the under-construction 823,000-square-foot distribution center that Amazon will occupy at 1201 Kennedy Road and 1 Joseph Lane. That facility is scheduled to be completed by the end of this year, Madrigal said. 

Industrial properties have been the hottest segment of Connecticut’s commercial real estate market in recent years, and many have been built in north-central Connecticut, where large swaths of open land and easy access to major highways have made it attractive for companies — particularly e-commerce retailers — to set up distribution centers closer to their end customers.
Scannell has been an active developer in Greater Hartford, particularly in South Windsor, where, since 2017, it has developed about 1.5 million square feet of distribution space that has led to more than $100 million in investment and attracted top corporate tenants, including Home Depot.

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