Ground has been broken on the first phase of the Gateway Commerce Center, a planned 5 million-square-foot industrial center on the site of the former Bethlehem Steel Grace Mine in New Morgan.
The project’s initial phase involves construction of two warehouses, one totaling 925,000 square feet and the other 292,000 square feet, according to developer Panattoni Development Co., Newport Beach, Calif.
Construction is being led by Brinkmann Constructors, St. Louis, Mo., with completion targeted for the fourth quarter of 2026, Panattoni said.
“Breaking ground on Gateway Commerce Center is an exciting moment for Panattoni and for the region,” Ian McDonald, partner at Panattoni Development Co., said in a release. “This site offers unmatched potential for logistics and manufacturing users, and we’re proud to see work begin on what will become one of Pennsylvania’s most dynamic industrial campuses.”
To obtain tenants, the buildings will be jointly listed by real estate advisory firm KBC Advisors, Seattle, Wash., and investment management firm Colliers, Toronto, Canada.
“This project demonstrates Panattoni’s ability to execute on high-quality industrial developments even amid challenging market conditions,” Michael Golarz, executive vice president of Colliers, said in the release. “With favorable zoning and no height restrictions, this project offers a unique opportunity for tenants to secure a strategic logistics facility with connections across the East Coast.”
The project benefits from direct access to Interstate 76 and Interstate 176, a 10-year LERTA tax incentive, no height restrictions and abundant public utilities, Pannatoni noted.
“Gateway Commerce Center is a rare development that scales from specialized tenant requirements to over 1 million square feet users, all without sacrificing access to labor, interstates or parcel networks,” Michael Zerbe, partner at KBC Advisors, said in the release. “The heavy infrastructure in place from day one is what transforms opportunity into speed.”
State officials previously noted the site is divided into 12 lots and the number of buildings could vary depending on the end user’s needs for the lot.
The first phase of the project is estimated to generate 450 jobs, with the entire industrial park eventually generating 2,750.
Pannatoni describes itself as one of the largest privately held, full-service development companies in the world.
The company has 69 offices in the United States, Canada, Europe and Asia and has developed more than 625 million square feet of space since its founding in 1986.
New Morgan is home to about 54 residents, according to 2020 data from the U.S. Census Bureau. The borough was established in 1988 from land formerly owned by Bethlehem Steel.
The Gateway Commerce Center benefits from direct access to I-76 and I-176, according to Pannatoni. (Courtesy of Pannatoni)