Second in a month: Philly company leaves, citing limited space
10/4/2013 | Real Estate Blog
Last month it was the company Destination Maternity, a leading global designer and retailer of maternity clothes, that made a major announcement concerning relocation of its corporate headquarters.
The Philadelphia-based company reportedly surprised local officials by announcing that both its headquarters and distribution operations will be relocated in New Jersey, with the move expected to be finalized prior to 2015. Destination Maternity was reportedly swayed by a $40 million incentive package offered by an arm of the New Jersey state government.
And now, just weeks following announcement of that notable development, comes news that another material commercial real estate transaction was recently concluded, with yet another Philadelphia company pulling up stakes and relocating to New Jersey.
This time the reported lure involved a combination of factors that, together, induced BK Specialty Foods to move its food and beverage distribution operations to a new location in South Jersey.
Foremost, said BK’s founder and president Brett Kratchman, the move “was facility driven,” with the company greatly upgrading its working space, from 12,000 square feet to more than 48,000 square feet. Additionally, BK received financing from the New Jersey Economic Development Authority. The amount received — in excess of $1 million — helped the company obtain additional financing necessary for the move.
The transaction also stipulates that BK will receive a further incentive grant of about $330,000 if the company brings a certain amount of jobs to New Jersey. The specialty food purveyor currently has about 50 employees.
BK has been steadily expanding over the years, with the company first starting out at a 4,500 square-foot site in South Philadelphia.
Source: Philadelphia Business Journal, “Philly loses another company HQ to New Jersey,” Peter Van Allen, Oct. 2, 2013