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UPS pays $55M for Carlisle-area warehouse

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United Parcel Service is the new owner of a 595,000-square-foot warehouse in Dickinson Township.
United Parcel Service is the new owner of a 595,000-square-foot warehouse in Dickinson Township. - (Photo / )

United Parcel Service is the new owner of a 595,000-square-foot distribution center near Carlisle.

UPS bought the space from Dermody Properties for $55 million, according to NAI Commercial Partners Inc., which represented UPS in the purchase. The facility, at 1 Ames Dr. in Dickinson Township, was part of Dermody's LogistiCenter at Carlisle.

Real estate firm CBRE Group Inc. represented Nevada-based Dermody in the sale.

The warehouse is not new to UPS, which had been leasing the building and outfitted it with conveyor systems this past fall in time for the holiday rush, said UPS spokeswoman Susan Rosenberg. The company used the space mostly for unloading, sorting and reloading trailers for packages that moved on to other processing points in the area.

UPS plans to add more processing capacity this year, as well as a delivery center to dispatch additional trucks during the holidays. UPS can also use a portion of the property as a trailer staging area and employee parking lot.

Seasonal hiring for the distribution center will likely begin in October, Rosenberg said, with UPS determining its exact staffing needs closer to that time.

Rosenberg compared this "small hub" to spaces the company added in the Allentown/Bethlehem area last year and a modular structure it built near its Harrisburg facility in 2015.

"These leases and purchased space around the country provide similar operations that give us flexibility and help us manage seasonal spikes," she said. "There has been growth in this area of Pennsylvania by our shipping customers, as well as the general growth of e-commerce and residential delivery."

Dermody Properties built the Dickinson Township warehouse in 2015, a couple years after it purchased a neighboring 700,000-square-foot warehouse at 2 Ames Dr. Those spaces collectively made up LogistiCenter at Carlisle.

Dermody sold the 700,000-square-foot facility last year to American Realty Advisors, which leases the space to Amazon, according to the Philadelphia Business Journal.

Dermody built a similar warehouse in Union Township, Lebanon County last year called LogistiCenter 78/81

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Jennifer Wentz

Jennifer Wentz

Jennifer Wentz covers Lancaster County, York County, financial services, taxation and legal services. Have a tip or question for her? Email her at Follow her on Twitter, @jenni_wentz.

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michaelmaloney November 6, 2017 11:34 pm

I suppose that if you're a business that works on logistics and distribution, youíre going to have to get a good property that will help to reduce the storage price of all of your things while they're waiting for transfers. For a company like UPS, I can imagine that all of the things in their care can amount to such an immense volume of items that need to be properly organized and categorised before delivery! Judging by the amount of parcels that come into my town in Wollongong alone, I can't even imagine how these companies manage to orchestrate it all!

Michael Garrison October 27, 2017 8:59 am

That's a great acquisition for UPS. I am into the real estate for sale pensacola fl business and know how important a warehouse is for a big company that wants to expand their business.

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Ruhi October 13, 2017 7:37 am

Glad to know about the purchase of the Carlisle Ė area warehouse as the UPS has paid $55M for it. For what purpose is this warehouse bought? I want to know about the facilities of the warehouse as it can be used mainly during the holidays. at&t fiber vs charter spectrum

maria October 12, 2017 4:27 am

It is such a huge amount but the warehouse like this is also very much necessary for keeping the standard. Thanks for sharing this news and associated things of this ware house and I hope the blog will surely keep the great work!
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Taylor Shaw October 9, 2017 7:45 am

UPS have secured one of the largest warehouses in the area with this huge investment. Itís going to be a great asset for their future endeavor and expansions so the cost will be returned as profit in a few years or so. sell your yyz miles for cash

Razvdkkol September 23, 2017 7:59 pm

Awesome blog. I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work!

lioneljohn September 16, 2017 4:55 am

This will be a major move by the company. To have a warehouse of such capability will be a really good thing. The storage section is so important for a company like united parcel service and this looks to be a great decision considering that. Complete Care Health Center Altadena