Urban Job Growth...Rimas Properties
RIMAS Properties
11 - 15 No. 2nd Street, Philadelphia, PA
Contact: Sammy Benakmoume (215)351-9366 sammy@rimasproperties.com
Under the recently concluded 20 year lease with owner/developer Rimas Properties, Rotem USA will transform the 290,000-square foot vacant industrial building at 2400 Weccacoe Avenue into a state-of-the-art rail car manufacturing facility. The new plant will produce rail cars for Southeastern Pennsylvania Transportation Authority (SEPTA) and transportation systems in other parts of the country.
The property is adjacent to the Port of Philadelphia and consists of 25,000 square feet of office space and 265,000 square feet of manufacturing space on 11.5 acres. Rotem USA expects to invest approximately $10 million in the property for their specialized manufacturing requirements including upgrading exterior rail lines and creating new interior rail lines.
Patrick Green, Executive Vice President, and Mike Mullen, Associate, of the Philadelphia Office of CB Richard Ellis, Inc. arranged the transaction between Rotem USA and Rimas Properties. The decision to remain in Philadelphia came after many months of evaluating potential industrial sites throughout Southeastern Pennsylvania.
Rimas Properties played an integral role in Rotem USA’s ability to keep their production line in Philadelphia. Recognizing the need to bring quality jobs to Philadelphia, Rimas Properties accepted below-market rental rates and offered favorable, long-term commitments designed to foster Rotem USA’s growth in the area.
Sammy Benakmoume, President of Rimas Properties said, “As Philadelphia residents ourselves, we felt that it was critically important to secure 300 new jobs here in the city. Protracted negotiations at the expense of the community would not have aligned with our firm’s values.”
Rotem USA was awarded a contract to manufacture 120 new Silverliner V passenger rail cars for the Southeastern Pennsylvania Transportation Authority (SEPTA) regional rail system in 2006. This contract has a “Buy America” provision whereby the final assembly of the rail cars must be performed in the US as well as 60% of the vehicle content must come from US suppliers.
Since the initial SEPTA contract, Rotem USA was also awarded a contract to manufacture 121 bi-level stainless steel rail cars for Southern California Regional Rail Authority’s (SCRRA) Metrolink commuter rail service. Due, in part, to the inefficiencies of operating facilities on both the East and West Coasts and the availability of a skilled manufacturing labor pool, Rotem decided to fulfill both contracts from this Philadelphia location.
Rotem officials expect to begin production of the railcars in 2008 and will continue to pursue additional contracts throughout the United States.
11 - 15 No. 2nd Street, Philadelphia, PA
Contact: Sammy Benakmoume (215)351-9366 sammy@rimasproperties.com
Major New Industrial Lease Helps Reverse Trend of Urban Job Loss
Rotem USA Corp American Subsidiary of a Hyundai Opens Rail Car
Manufacturing Facility In Philadelphia
Owner Rimas Properties Leases 11.5 acre 290,000 sq. ft.
Facility Creating An Influx of 300 Manufacturing Jobs
Philadelphia, PA – Rotem USA Corporation, the American subsidiary of Rotem Company, a division of the Hyundai Motors Group, will create its new U.S. headquarters and approximately 300 new manufacturing jobs in the Pennsport area of South Philadelphia.Under the recently concluded 20 year lease with owner/developer Rimas Properties, Rotem USA will transform the 290,000-square foot vacant industrial building at 2400 Weccacoe Avenue into a state-of-the-art rail car manufacturing facility. The new plant will produce rail cars for Southeastern Pennsylvania Transportation Authority (SEPTA) and transportation systems in other parts of the country.
The property is adjacent to the Port of Philadelphia and consists of 25,000 square feet of office space and 265,000 square feet of manufacturing space on 11.5 acres. Rotem USA expects to invest approximately $10 million in the property for their specialized manufacturing requirements including upgrading exterior rail lines and creating new interior rail lines.
Patrick Green, Executive Vice President, and Mike Mullen, Associate, of the Philadelphia Office of CB Richard Ellis, Inc. arranged the transaction between Rotem USA and Rimas Properties. The decision to remain in Philadelphia came after many months of evaluating potential industrial sites throughout Southeastern Pennsylvania.
Rimas Properties played an integral role in Rotem USA’s ability to keep their production line in Philadelphia. Recognizing the need to bring quality jobs to Philadelphia, Rimas Properties accepted below-market rental rates and offered favorable, long-term commitments designed to foster Rotem USA’s growth in the area.
Sammy Benakmoume, President of Rimas Properties said, “As Philadelphia residents ourselves, we felt that it was critically important to secure 300 new jobs here in the city. Protracted negotiations at the expense of the community would not have aligned with our firm’s values.”
Rotem USA was awarded a contract to manufacture 120 new Silverliner V passenger rail cars for the Southeastern Pennsylvania Transportation Authority (SEPTA) regional rail system in 2006. This contract has a “Buy America” provision whereby the final assembly of the rail cars must be performed in the US as well as 60% of the vehicle content must come from US suppliers.
Since the initial SEPTA contract, Rotem USA was also awarded a contract to manufacture 121 bi-level stainless steel rail cars for Southern California Regional Rail Authority’s (SCRRA) Metrolink commuter rail service. Due, in part, to the inefficiencies of operating facilities on both the East and West Coasts and the availability of a skilled manufacturing labor pool, Rotem decided to fulfill both contracts from this Philadelphia location.
Rotem officials expect to begin production of the railcars in 2008 and will continue to pursue additional contracts throughout the United States.
posted by Rimas Properties at
12:00 AM
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