Lidl buys land for distribution center in nearly $3M deal

Aug 21, 2015, 2:18pm EDT

Kristin ZacharyReporterTriad Business Journal

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An affiliate of Germany-based grocer Lidl has paid nearly $3 million for land that will… more

Nearly 90 acres of Alamance County land where construction is underway to build Lidl's distribution center has been purchased by an affiliate of the discount German grocer as it works toward U.S. expansion.

GRDI LLC, an entity formed July 8, bought two lots, one nearly 86 acres and the other nearly 2 acres, for nearly $2.85 million. We previously have linked GRDI LLC to MGP Retail, Lidl's Virginia-based real estate affiliate.

The lots are located at 3815 Melville Commerce Parkway, which is contiguous to land where a Wal-Mart perishable goods distribution center is under construction. Both projects are in the 1,200-acre N.C. Commerce Park.

Much of the land in that area of Alamance County is traced back to the Scott family and was the homestead of two former governors and Meg Scott Phipps, former commissioner of agriculture for North Carolina.

The land purchased for the Lidl distribution center was sold by Scott/Mayo Properties LLC, an entity managed by William C. Scott Jr., who is president of Alamance Foods Inc., a Burlington company that manufacturers private label branded water, flavored drinks, freeze pops and aerosol whipped cream, according to its website. His father, William C. Scott Sr., is CEO.

Scott declined to comment on the sale, saying he had signed a non-disclosure agreement.

A deed dated July 27 shows Scott/Mayo Properties sold lot 1A, which spans 85.58 acres, and lot 1B, a 1.95-acre lot. Scott/Mayo Properties retains ownership of lot 2, which spans 92.14 acres off Kimley Road and Governor Scott Farm Road.

Construction began earlier this month on the Lidl distribution center and regional headquarters, a $125 million project that is expected to create 200 jobs. Basic grading and clearing was underway weeks ago on the 900,000-square-foot project.

GRDI LLC also has purchased a 3.76-acre property at 3335 Sides Branch Road and 1409 Lumber Lane in Winston-Salem for $2.3 million. A $2.5 million building permit pulled earlier this year called for a shell building for a grocery store on the land.

We first reported in early April that the discount grocer, which operates nearly 10,000 stores globally and is a direct rival to fast-growing Aldi, was considering building an 850,000-square-foot facility on an approximately 85-acre site at the N.C. Commerce Park on Interstate 85/40.

Alamance County and the cities of Graham and Mebane approved a nearly $5.38 million incentive package to lure the grocer.