This is the second speculative industrial business park to be developed since 2019 in the city, and Fairfield has offered the same tax break to Brennan as it did Ambrose Property Group, the builder of Fairfield Commerce Park, which is less than 2 miles south on Seward Road.
“I just think there is really a need right now for more industrial and commerce and light industrial space in this area,” said Lance. “A lot of people like this location, like the city of Fairfield and I think there’s a need for space for people that are looking in this area.”
Brennan Investment plans to build two buildings, one at 163,000-square-foot and the other at 280,000-square-foot, that can accommodate users that require 35,000 to 150,000 square feet from a range from service-type users, like light manufacturing, light industrial, logistics and fulfillment companies.
The two new warehouse/manufacturing buildings will cost an anticipated cost of $42.5 million once Brennan closes on the property, which is expected to be in February. Construction is anticipated to start in March and take anywhere from a year to 14 months.
Lance said they’ll look to have tenants in the building anywhere from six to 12 months from completion of the buildings, which should be finished in the summer of 2023. He said their buildings around the country, and region, are around 97% occupancy.
Fairfield City Council approved a similar tax deal for Brennan Investment as it did for Ambrose Property Group for its Fairfield Commerce Park.
Brennan Investment officials estimate more than 255 employees will work at the business park with an expected total payroll at nearly $7.9 million.
City Council OK’d a community reinvestment area agreement that will give Brennan Investment a 10-year, 75% property tax incentive on the assessed value of the expansion. Fairfield Economic Development Manager Nathaniel Kaelin said due to the speculative nature of the project, Brennan Investment officials have agreed to make payments to the city should building occupants not meet or exceed the jobs and payroll thresholds outlined in the agreement.
“We saw Brennan was a strong developer,” said Kaelin on why the city extended the tax deal.
Also, there will be a four-party school compensation agreement, where the city will compensate Fairfield City Schools 30% and 0.5% of the property tax abatement each year during the life of the exemption.
Brennan Investment Group acquires, develops, and operates industrial properties in various metropolitan markets throughout the United States. The proposed Seward Pointe Commerce Park would add to the company’s portfolio which currently spans 29 states and encompasses 44 million square feet. Since 2010, Brennan Investment Group has acquired more than $4 billion in industrial real estate.