Thursday, October 23, 2014

Clarion/MRP Acquire 129-Acre Warehouse Distribution Site in Central PA

New York real estate investment manager Clarion Partners has once again teamed up with MRP Realty's industrial real estate affiliate to buy the former I-81/I-78 Logistics Park in Lebanon County, PA.

The new owners have renamed the planned two-building, 1,502,000-square-foot warehouse-distribution development Gateway Logistics Park. Located on a 129-acre site, the project includes development parcels for a 1,002,000-square-foot building and a smaller 500,000-square-foot center with pads in place.

Gateway Logistics Park is the third industrial real estate project the two companies have built and owned, including Fulling Mill Road in Harrisburg and Burlington Industrial Park in Burlington, NJ.

The two firms said they are focused on providing warehouse distribution faciltiies to support the growing trend among major retailers for direct-to-consumer fulfillment.

"With the market’s supply constraints we feel we are well positioned to capture build-to-suit opportunities or build spec inventory" with this property, said Andy Sitzer, senior vice president with Clarion Partners.

"Over the past 12 months, the Central Pennsylvania market has experienced nearly eight million square feet of new absorption, with a steady pipeline of new tenants entering the market," said D. Reid Townsend, principal with the Baltimore-based MRP Industrial.

Located where Interstates 81 and 78 merge east of Harrisburg, the property is within 30 miles of a new 300,000-square-foot FedEx distribution center at 111 Fulling Mill Rd. and a new UPS distribution hub.

Earlier this year, Pennsylvania approved the property's application for the Commonwealth’s Local Economic Revitalization Tax Assistance (LERTA) program, which offers partial real estate tax relief to future tenants during the initial 10 years of occupancy.

The property seller, I-81/I-78 Logistics Park, LLC, was a partnership between Panattoni Development Co. and the California State Teachers' Retirement System. Design and entitlements were led by Ware Malcomb Architects, Herbert Rowland & Grubic, Inc. and Advantage Engineering.

Friday, October 17, 2014

Philadelphia Area Office Vacancy Stays at 11.0% for 3rd Quarter

The Philadelphia Office market ended the third quarter 2014 with a vacancy rate of 11.0%.

The vacancy rate was unchanged over the previous quarter, with net absorption totaling positive 131,961 square feet in the third quarter. That compares to positive 760,857 square feet in the second quarter 2014. Vacant sublease space increased in the quarter, ending the quarter at 1,388,566 square feet.

Tenants moving into large blocks of space in 2014 include: The Vanguard Group moving into 204,000 square feet at Great Valley Corp Center; The Harrisburg University of Science & Technology moving into 149,820 square feet at Harrisburg University Academic Center; and Beneficial Mutual Bancorp, Inc. moving into 95,764 square feet at 1818 Beneficial Bank Place.

Rental rates ended the third quarter at $21.62, an increase over the previous quarter.

A total of two buildings delivered to the market in the quarter totaling 219,036 square feet, with 3,506,297 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.2% from the previous quarter, with net absorption positive 27.56 million square feet in the third quarter. Average rental rates increased to $22.38, and 233 buildings delivered to the market totaling almost 13.2 million square feet.

Commercial Real Estate Conshohocken- What's going on? (Video)

Thursday, October 16, 2014

Kislak Completes $42 Million Eastern PA MF Sales

by Steve Lubetkin,
The Kislak Company has sold three multifamily properties in eastern Pennsylvania for nearly $42 million.

The transactions include the $31.1 million combined sale of Belair Townhomes, a 208-unit property, and Mayfair Manor Apartments at Grandview, a 60-unit property, both in Lancaster. Kislak also handled the $10.6 million separate sale of Auburn Station, an 85-unit loft-style property with land to build an additional 49 units in Allentown. Robert Holland, Kislak’s president, represented the sellers and purchasers, longtime Kislak clients, in both transactions.

Belair Townhomes, Lancaster, PA
“The central and eastern PA market is very hot for both buyers and sellers,” Holland tells exclusively. “It was a good time for the sellers to sell given the premium pricing. It was also a good time for the buyers to buy given the growth potential amid low interest rates with an eye toward long term hold.”

Belair Townhomes is a 208-unit luxury apartment complex that includes large one-, two-, three- and four-bedroom units with private entrances and patios in 26 three-story buildings on 32 acres. Approximately 95% of the units have been renovated and all units include individual HVAC units, eat-in kitchens, walk-in closets and laundry rooms. The complex includes ample parking and garages are available to select units.

Kislak president Robert Holland handled all three sales.
Mayfair Manor Apartments at Grandview is a 60-unit garden apartment complex located less than ten minutes from Belair Townhomes and includes large one-, two-, and three-bedroom units. Ample amenities include eat-in kitchens, balconies or terraces, and laundry facilities. The property is also 97% renovated.

Berkadia arranged Freddie Mac financing. At the time of closing, the properties were approximately 95% occupied.

Auburn Station, Allentown, PA
Auburn Station is an 85-unit loft-style apartment building with on-site parking and land to build an additional 49 units. The property contains two two-story mill-style buildings and was recently gut renovated. Units have large, open and spacious floor plans.

Scott Lipson, Esq. of Norris, McLaughlin & Marcus, PA represented the seller, and Jason Weiss, Esq. represented the buyer. Eastern Union arranged financing through Investors Bank. At the time of closing, the property was 100% occupied.