Friday, July 31, 2015

American Airlines Opens New Cold Storage Facility for Pharmaceuticals

By Kathleen E. Carey, Delaware County Daily Times
American Airlines celebrated the opening of its $5 million, 25,000-square-foot, temperature-controlled pharmaceutical and health care materials handling facility in Cargo City at Philadelphia International Airport Tuesday.

Airline officials chose to transform a former ground-service equipment facility into a cooled warehouse specifically to house pharmaceutical items. Previously, the items were held in a portion of the 89,000-square-foot refrigerated building across the street, where other items, including produce, seafood and flowers, are stored while in transit.

American Airlines Manager of Cold Chain Strategy Thomas Grubb explained that pharmaceutical customers like a dedicated facility for their product because it could be impacted by particulate from other items when in a shared space.

“The two main goals are that the products remain safe and then remain effective, because basically we’re not just talking about shipments at an airport,” he said. “We’re talking about a patient at the other end. It’s not just a matter of making sure it doesn’t get destroyed in route, but also when it gets to them that it has the therapeutic effectiveness that it needs to have.”

The facility handles both actively and passively stored materials.

In the active container management area, a maximum of 30 C-Safe RKN and Envirotainer pods can connect to electric recharging stations. Each pod has its own internal temperature control system between 0 and 25 degrees Celsius and is set at the temperature the customer requests.

The passive area consists of two cooled rooms — 6,000 square feet designated between 15 and 25 degrees Celsius for delicate products, such as vaccines, therapeutic protein treatments and blood/plasma products, and 3,000 square feet set between 2 and 8 degrees Celsius. Most passive shipments are contained in scientifically designed boxes packed with dry ice or gel packs to maintain a certain temperature for a specified time.

There is also a deep frozen area reserved for items that need to be kept between minus 10 and minus 20 degrees Celsius.

Officials break ground on Holtec site in Camden

by Andrew George,
Officials gathered at the southern end of the Camden waterfront on Wednesday to break ground on the much anticipated Holtec International project.

The project, which calls for a 600,000-square-foot manufacturing and technology center, was approved last year for $260 million in incentives by the Economic Development Authority. Holtec will also be making a capital investment of $260 million, which officials hailed as the largest single private investment in the city’s history.

“Today, we are all bearing witness to Camden’s real transformation,” said Mayor Dana Redd. “The city is proud to welcome Holtec International as our new world-class business partner. Holtec is not only committed to building a state-of-the-art technology and manufacturing facility, they are ready and willing to build human capital by proving real job opportunities for Camden residents.”

Holtec President Kris Singh said the future facility will be a “cathedral of industry.”

“We are acutely aware of our social responsibility,” said Singh. “We will work with the state of New Jersey and the city of Camden to leverage our plant to serve as a training academy to help young men and women, especially unemployed Camden residents and veterans, to acquire skills that yield well-paying jobs. Our center also serves to signal the renaissance of manufacturing in the United States powered by private enterprise.”

Lt. Gov. Kim Guadagno called the project’s development a “strong new day for Camden.” She said she had personally worked on the project for the last five years.

“It is incredibly satisfying to be here to see the largest single investment ever in Camden start to come to life,” Guadagno said. “We will continue working toward this city’s renewal, with projects like Holtec’s technology campus. Today, we celebrate not only hundreds of new and retained jobs, but also Holtec’s commitment to the Camden community and its continued presence in New Jersey’s innovation ecosystem.”

“On the same site where the New York Shipyard built the first nuclear powered merchant ship, Holtec will now build the next generation of clean, reliable, carbon-free energy,” Norcross said.

Duke Developing 1.1M SF Spec Warehouse on East Side of Lehigh Valley

by Steve Lubetkin,
Duke Realty Corporation has purchased a 63.1-acre site on the east side of the Lehigh Valley where it will build a new speculative 1.1 million-square-foot, modern bulk industrial building to be available in late 2015 or early 2016.

The warehouse, Building One at the 33 Logistics Park at Chrin Commerce Centre, will be located on Van Buren Road just off Route 33 at the new four-way diamond interchange at Main Street.

“33 Logistics Park - Building One will be well positioned for large users looking for first-class industrial space in the Lehigh Valley, a distribution hub that has high demand, but limited availability,” says Jeff Palmquist, senior vice president of Duke Realty’s Northeast Region. “When complete, 33 Logistics Park Building One will provide users with large space needs the opportunity to move into first-generation space with state-of-the-art specifications in a location that provides unrivaled access to the highly populated New York City metropolitan area. From this building, companies will have ready access to I-78, I-81 and I-80 and be within a day’s drive of more than 40 percent of the population of the United States and Canada.”

Designed with modern bulk warehouse functionality in mind, 33 Logistics Park - Building One will incorporate features maximizing efficiency, including 36' clear height; 48' x 54' column spacing with 60' x 54' staging bays; 112 ? 9' x 10' dock doors; 200' deep truck courts, 277 trailer storage positions and ESFR fire protection. Its cross-dock configuration includes two main entrances, automobile parking at both ends of the building and full truck circulation making the building suitable for multi-tenant occupancy.

“33 Logistics Park - Building One continues the reputation Duke Realty has established for providing first-class distribution facilities in strategic locations,” says Palmquist. “In addition to this facility, we have the ability to develop even more space—up to an additional 1.6 million square feet on two adjacent parcels. This flexibility is especially important if a client has specific needs and requires a build-to-suit facility.”

The new development will be Duke Realty’s third building in the Lehigh Valley, complementing West Hills Business Center, where it owns a  980,000-square-foot bulk warehouse and a 233,000-square-foot bulk warehouse on the west side of the valley. These three facilities, along with other bulk warehouse buildings it owns in Pennsylvania, New Jersey, Delaware, Maryland and Virginia, raise Duke Realty’s Northeast United States industrial portfolio to more than 9.2 million square feet.

Thursday, July 30, 2015

PREIT to demolish Exton Square's Kmart, add organic grocery store.


Pennsylvania Real Estate Investment Trust, owner of Exton Square Mall in Chester County, plans to demolish the site's Kmart building and replace it with a large-format organic grocery store.

PREIT chief executive Joseph Coradino told analysts in a conference call Wednesday that the grocer would be named in the coming days. A lease for 55,000 square feet has been executed, he said.

Philadelphia-based PREIT also has identified a dine-in movie theater and a bowling-and-entertainment center as prospective tenants for the former site of a 118,000-square-foot J.C. Penney Co. store at Exton Square, Coradino said.

The moves come as PREIT - owner of the Gallery at Market East in Center City, the Cherry Hill Mall and Willow Grove Park, among other shopping sites in the region and nationally - pursues a strategy of upgrading its top-performing properties in high-density areas while shedding farther-flung assets.

In a release Tuesday, PREIT said it would soon close on its sale of Uniontown Mall in southwestern Pennsylvania for $23 million. The buyer, who was not identified, will separately acquire ownership of the land on which the mall is built, the company said.

PREIT also has entered into an agreement to sell Gadsden Mall in Gadsden, Ala., Wiregrass Commons Mall in Dothan, Ala., and New River Valley Mall in Christiansburg, Va., to an institutional buyer for $95.4 million.

The transactions would make up a total of 10 malls sold under the company's disposition program, PREIT said. Total funds raised through the sale of those malls and other assets would total more than $560 million, it said.

PREIT is negotiating agreements of sale on two more "non-core" malls, which it said it hopes to execute within the next several weeks.

On the call with analysts Wednesday, Coradino said PREIT was unable to release a development schedule for its planned $325 million revamp of the Gallery because it had yet to secure some state support for the project.

He blamed the delay on the ongoing discord between the Democratic administration of Gov. Wolf and the Republican-led legislature.

PREIT and its partner in the Gallery, Macerich Co., have been awarded $14.5 million in state grants for the project, but have applied for $20 million more.

"There's a lot of tension in Harrisburg right now with our new governor, so we didn't get it done as quickly as we'd like to," Coradino told analysts. "That's why you're not getting the full story on the Gallery."

Liberty Property Trust 2Q FFO 13.6 Percent Higher

by Steve Lubetkin,
Liberty Property Trust says funds from operations available to common shareholders for the second quarter of 2015 rose 13.6 percent, to $0.67 per share, from $0.59 per share for the second quarter of 2014. FFO per share for the six months ended June 30, 2015 was $1.37, compared to $1.17 for the same period in 2014.

Net income per common share (diluted) was up 20 percent, to $0.24 per share for the quarter ended June 30, 2015, vs. $0.20 per share for the quarter ended June 30, 2014. Net income for the six months ended June 30, 2015 was $0.45, compared to $0.69 for the same period in 2014. Net income for the 2015 six month period reflects gain on sale of $0.02 per share, compared with $0.33 per share for the same period in 2014.

“We are very pleased with the continued strength of the core portfolio, evidenced by rent and occupancy growth in our industrial and class A office product,” says Bill Hankowsky, chairman and chief executive officer. “We also advanced our strategic dispositions and continue to see excellent development opportunities. Market operating fundamentals should bode well for the remainder of the year.”

At June 30, 2015, Liberty says its in-service portfolio of 105 million square feet was 93.8 percent occupied, compared to 93.2 percent at the end of the first quarter of 2015. During the quarter, Liberty completed lease transactions totaling 8.7 million square feet of space.

Property level operating income for same-store properties increased by 2.7 percent on a cash basis and by 3.2 percent on a straight line basis for the second quarter of 2015 compared to the same quarter in 2014.

In the second quarter, Liberty opened four development properties for a total investment of $87.7 million. The properties contain 1.3 million square feet of leasable space and were 90.8 percent occupied as of the end of the quarter. The yield on these properties at June 30, 2015 was 7.5 percent.

Liberty began development of four properties totaling 491,100 square feet of leasable space at a projected investment of $33.8 million. The properties include:

1951, 1953 and 1957 TW Alexander Drive, three distribution buildings totaling 321,000 square feet at Liberty Ridge in Durham, NC.
5032 Sirona Drive, a 170,100 square foot distribution building at Shopton Ridge in Charlotte, NC.
During the quarter, a joint venture in which the company holds a 25 percent interest began construction on property containing 210,600 square feet at 400 Arlington Boulevard in Logan, NJ, for a projected investment of $14.4 million.

Liberty acquired one operating property for $36.7 million. The property is a 410,000 square foot distribution building in Fontana, CA. It was 100 percent leased as of June 30 and is currently vacant with a projected stabilized yield of 5.5 percent.

During the quarter, Liberty sold 23 properties containing 1.4 million square feet of leasable space and 3.1 acres of land for $116.1 million. These properties were 89.8 percent leased at the time of the sale. In addition, a joint venture in which Liberty holds a 25 percent interest sold one vacant property containing 198,000 square feet for $8.5 million.

Liberty says it expects to report 2015 FFO per share in the range of $2.60 - $2.65, slightly higher than previous guidance of $2.55-$2.65 per share.

Wednesday, July 29, 2015

Clark Group Leases 100k of Space at Capital Logistics Center

by Steve Lubetkin,
Woodmont Industrial Partners says The Clark Group, a logistics provider for print media, has signed a three-year lease for 103,217 square feet at 400 Capital Lane in the Capital Logistics Center in Middletown, PA.
Capital Logistics Center is a six-building, 1.55-million-square-foot industrial complex situated on more than 100 acres in Middletown, PA. The 242,824-square-foot building, which is owned through a joint venture of Woodmont and AEW Capital Management, is now fully leased.
 It plans to use the space to store publications.
“The Capital Logistics Center is the ideal location for a leading logistics company like The Clark Group and we look forward to forging a long-term relationship with the company,” says Eric Witmondt, chief executive officer of Woodmont Industrial Partners. “Now that the capital improvements are complete, the complex has helped to bridge the gap for quality industrial space in the region.”
400 Capital Lane, recently renovated to modern standards, is one of six class A industrial buildings at the Capital Logistics Center. Features include thirty dock doors, three drive-in doors, T5 lighting, a six-inch reinforced concrete floor and a standing seam metal roof.
The facility is located at the heart of the I-81 Distribution Corridor in central Pennsylvania. It fronts the Pennsylvania Turnpike and is less than a mile away from Harrisburg International Airport. The property is also near local FedEx and UPS facilities as well as Routes I-283, I-83 and 322.

GLP Make Mega Buy with $4.55B Warehouse Portfolio Purchase

In the latest industrial portfolio mega deal since the end of last year, Global Logistic Properties Ltd has agreed to acquire a 58 million-square-foot logistics portfolio spread across 20 major U.S. markets.

The $4.55 billion purchase from Industrial Income Trust will increase GLP's U.S. holdings by 50% to 173 million square feet, with the Singapore-based company becoming the second-largest warehouse and logistics owner and operator behind Prologis (NYSE: PLD) just a year after entering the U.S. market.

GLP won't hold most of the assets for very long after the expected Nov. 16 closing of the IIT deal. The company expects to boost occupancy to 95% while paring down its stake to 10% by next April. GLP said it's in negotiations with several new and existing funds and capital partners attracted by strong demand by major institutional investors for investment in U.S. logistics assets.

"This is an accretive opportunity for GLP that allows us to strengthen our U.S. market presence and growth prospects with minimal incremental overhead," said GLP Chief Executive Officer Ming Z. Mei in a statement.

The fund syndication offering for GLP's first U.S. income fund was significantly oversubscribed, and the company is confident of placing the bulk of the Industrial Income portfolio into its fund management platform by next spring.

GLP is also the largest logistics provider in China, Japan and Brazil, with a global portfolio encompassing more than 500 million square feet valued at $33 billion after the transaction.

The company teamed up with GIC, Singapore's sovereign wealth fund, to enter the U.S. market and buy Blackstone's IndCor Properties portfolio for $8.1 billion in a transaction that closed in January.

In another huge deal in April, a joint venture of Prologis and Norges Bank agreed to pay $5.9 billion for KTR Capital Partners and its 60 million square feet of U.S. industrial space,including eight development projects totaling 3.6 million square feet.