Target pays $33M for site in New Kent industrial park

Target would likely look to use the New Kent site for a distribution center serve its network of stores. (Image courtesy Target)

A major retailer has bought into a large industrial park taking shape just east of Richmond.

Target recently acquired 164 acres in the New Kent City Center development in the western part of New Kent County.

The Minneapolis-based retailer purchased the site for $32.9 million from an LLC tied to Scannell Properties, a real estate developer out of Indianapolis, according to the deed filed in New Kent courthouse.

Details about Target’s plans for the site, such as what kind of facility is planned to be built and when construction would start, were unavailable. The company didn’t respond to a request for comment Monday.

Target would join fellow retailer AutoZone in the 1,600-acre, mostly undeveloped industrial park south of Exit 211 on Interstate 64 and between Emmaus Church and Olivet Church roads.

Target’s acquisition occurred the same day as a transaction in which Scannell acquired the 164 acres for $7 million from SPF Investments, an LLC tied to local developer Fred Shaia. Scannell then sold the land to Target for nearly five times what it cost the firm to acquire. The deals took place in late February and were recorded with the county last week.

The land was a portion of a 613-acre parcel, the remainder of which is still owned by Shaia. The property’s assessed value is $7.1 million, online land records state.

Scannell didn’t respond to an email seeking comment.

AutoZone’s 800,000-square-foot distribution facility at 7360 City Center Court is now operational, following its groundbreaking in 2022. The project was the first to open at the industrial park and is on the northern end of the development.

Last year, Maryland-based developer Matan Cos. spent $15 million to acquire nearly 300 acres around the AutoZone facility. Matan is planning to build up to 2 million square feet of industrial warehouse space across several buildings, and clearing has started on the site.

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