In a sweet deal for the Bronx, Krispy Kreme Doughnut Corporation, the well known global retailer of premium-quality treats, has entered into a long-term lease for 26,486 square feet of space at 535 Zerega Avenue in Castle Hill. The warehouse facility, which was leased by Simone Development Companies, will serve as corporate commissary to accommodate the company’s expansion plans according to a spokesperson for Krispy Kreme.
The Bronx investment comes as part of Krispy Kreme’s recently announced Times Square expansion, which is anticipated to open in early 2020. The company “was in need of large warehouse space to set up their regional bakery and distribution center,” said Josh Gopan, director of Leasing for Simone Metro Properties, who represented the building owners in the deal.
According to that spokesperson, Simone Development’s excellent reputation for delivering high quality real estate and experience was a major selling point in closing the deal.
“Located within the Zerega Industrial Park, the property offers all the elements they were looking for, including easy access to the Bruckner and Cross Bronx expressways, a 13,000 square-foot outdoor lot, ample parking, multiple overhead doors and 21-foot ceiling heights,” Gopan said, explaining the nature of the facility located across from Westchester Creek.
The area’s relatively low crime rate also encouraged the deal for the sake of employee safety, a spokesperson said.
Krispy Kreme will share the 70,000 square-foot property with one other tenant, New York Road Runners.
The non-profit community running organization, will occupy the remaining 40,000 square-foot space after consolidating its city-wide warehouses in June of 2017. The property is now 100 percent occupied.
“With modern industrial space in the Bronx in such short supply, this property was extremely attractive to a variety of tenants,” said Gopan. “We are extremely happy to be able to accommodate Krispy Kreme and bring such a quality company to the Bronx,” he continued.
535 Zerega is also a newly constructed property with its high ceilings and “excellent column spacing creating an efficient use of space,” the spokesperson said.
According to the spokesperson on the deal, another reason the Bronx was such an attractive location for Krispy Kreme includes its close proximity to the anticipated Times Square location. With easy access to the Whitestone and Throgs Neck bridges via the Bruckner Interchange, the Castle Hill warehouse will “also support future growth in other boroughs and New York Metro Areas,” the spokesperson explained.
“When compared to areas such as New Jersey, it became apparent to Krispy Kreme that the higher rents within the city’s limits were offset by multiple levels of efficiency including public transportation, access to employees and transportation costs,” Gopan expalined.
Krispy Kreme intends to connect with business centric groups around the borough, such as the Bronx Chamber of Commerce and Bronx Overall Economic Development Corporation, to tap into the community’s vast resources and job market.