NEW ALBANY — A 25-acre plot of vacant land previously owned by Pillsbury is set to become a storage development in the near future, but the company’s former plant is still up for sale.
Two New York investment companies sold the 25 acres at 424 Mount Tabor Road to Sea Star Investment Inc. this winter.
Michael Whipple, the owner of Sea Star Investment, as well as some other investors, will turn the land into Storage 265, LLC, a 342-unit storage business.
The storage development will be constructed in phases, with the first beginning this summer and lasting about a year, said Todd Harrett, one of the Storage 265 investors.
The first phase will include 63,500-square feet worth of storage units, 84 covered parking spaces and 131 open spaces. The second phase will include 61,500-square feet, 36 covered spaces and 91 open spaces. About 13 acres of space on the property will remain empty.
Harrett said the second phase will likely begin construction within 18 to 24 months. The land is right next to the 455,000-square feet Pillsbury plant that closed last year.
The plant still does not have a buyer, said Gregory Schain, a principal of New Mill Capital Holdings. New Mill bought the plant in November along with Tiger Capital Group.
The two companies have not been aggressively marketing the property because it hasn’t been in “showable condition."
"It's kind of getting there now," Schain said.
The companies held an auction for the plant’s processing equipment in January. They have sold everything, but the equipment is still in the process of being removed from the property. It will take approximately 30 days to get everything out.
The plant still has its refrigeration systems, boilers and silos — making it a functional building for a food manufacturer, Schain said. The property also has a "couple hundred thousand" square feet worth of warehouse, as well as rail access.
New Mill and Tiger Capital are looking for single users to buy the property “as soon as possible,” but Schain said multiple tenants could fit in the plant.
“We’d rather bring some life back to the property sooner rather than later, but things like this take time,” Schain said.