Monday, November 30, 2015

Gloucester Premium Outlets, Simon Properties, Adds Two New Retailers

by Steve Lubetkin,
Gloucester Premium Outlets says two new retailers have opened at the South Jersey outlet shopping destination, which itself just opened in August.

Gap Factory and Old Navy Outlet opened this month in the Mill Court section of the property..

These new tenants join existing retailers including Armani Outlet, Calvin Klein, Carter’s, Cole Haan, Columbia Sportswear, Crocs, J.Crew, Levi’s Outlet Store, Nike Factory Store, Puma, Steve Madden, Under Armour and Vera Bradley.

“The opening of these two popular retailers comes at the perfect time: right before the start of the busy holiday season,” says Shannon Palzer, director of marketing and business development for Gloucester Premium Outlets. “We now have even more dynamic brands for our customers to discover and enjoy and we are confident that both brands will be well received.”

Gloucester Premium Outlets features 90 outlet stores. The property is owned by Simon Property Group.

Wednesday, November 25, 2015

York Industrial, 515 Zarfoss Drive, Sold For $16.5M

by Steve Lubetkin,
Endurance Real Estate Group and Thackeray Partners have sold the 313,000 square-foot 515 Zarfoss Drive in York, PA, to Industrial Property Trust for $16.5 million. The property is located in the 27 million square foot Central Pennsylvania industrial market, which is widely considered one of the top performing in the United States.

“515 Zarfoss Drive presented the opportunity for the buyer to acquire a 100 percent leased, highly-functional asset with a tenant who has an unmatched local presence and commitment to the market." “York County has continued to be a shining star within the Central Pennsylvania market, outperforming other locations in terms of high quality of labor, rental rates and limited vacancy.”

Central Pennsylvania remains an attractive industrial market for investors due to its  superior regional connectivity within a one-day drive of New York, Philadelphia, Baltimore, Washington, DC, and Pittsburgh. The York County market has emerged as one the most highly sought after locations within the Central Pennsylvania market due in part to its close proximity to Harrisburg, strategic location along I-83 and high quality labor.

Monday, November 23, 2015

Endurance Real Estate Group Refi's $28M on 2 Horsham Warehouses

by Steve Lubetkin,
Endurance Real Estate Group $28 million refinanced two fully-leased industrial shallow bay warehouse and office buildings totaling 246,790 square feet in the Philadelphia suburb of Horsham, PA.

It is a 10-year, fixed-rate loan through Silverpeak Real Estate Finance.  Loan proceeds will refinance existing debt.

The 100-percent-leased portfolio consists of 200 Precision Drive and 425 Privet Road in the Pennsylvania Turnpike Corridor in Horsham, 19 miles north of Philadelphia’s CBD.  The properties are adjacent to one another and are approximately three miles from Interstate 276 (Pennsylvania Turnpike) via exit 343, which provides access to Interstates 76, 476 and 95.

The 126,500-square-foot 200 Precision Drive contains 63,000 square feet of warehouse space, 49,400 square feet of office space and a 14,200-square-foot laboratory.  The building is housed on 11.13 acres and is leased to Finisar Corporation, C&D Technologies and DrugScan.  Fully-leased to Teva Pharmaceuticals, 425 Privet Road underwent an expansion in 2008 to expand the asset to its current-day 120,290 square feet.  Situated on 13.1 acres, the property contains 615 parking spaces.

Friday, November 20, 2015

Rents Rising, Availability Tightening in Philadelphia Office Market

by Steve Lubetkin,
Asking rents for Center City Philadelphia office space have risen nearly four percent year over year, while availabilities have declined by 2.2 percent. Overall leasing grew to 3.3 million square feet in the quarter, up 13 percent from the prior period, and class A trailing volume of 2.2 million square feet was up 40.2 percent for the quarter and a solid eight percent for the year so far.

“Everybody here is pretty excited about the direction the city is going in. There have just been a number of firms that have moved to the city, and the construction that’s happening. The downtown atmosphere is completely changed.”

Availability of suburban class A space dropped to 16.7 percent from 17.9 percent in the quarter. In Center City, the class A availability dropped to 11.8 percent. Both Center City and suburban areas recorded their lowest class A availability since the end of 2008, and that flight to quality office space is leading to the rising rates.

“The most significant thing you are seeing is the breakdown in pricing among buildings, where trophy class buildings have seen some significant price increases, relative to the lower end of the class A market and the class B market, which has largely been flat for the last decade,” says Garberson.

The redevelopment of the Gallery retail mall, and the nearby Market East development nearby, are moving rents in the East Market area higher. Once the Marketplace Design Center announced its move to the new Market East project in The Annex Building, other properties in the area being redeveloped have increased their rents, he says.

“There’s a lot of confidence in that part of the city among landlords right now,” he says.

The redeveloped Navy Yard in South Philadelphia got a boost last week with funding announced to study extending the Broad Street subway line to the complex. Garberson thinks the project will need more mass transit if it is to continue to grow. Earlier this year, Axalta announced a 175,000 square-foot R&D center being built with Liberty Property Trust.

“If they continue with their plans, and they’re going to include residential at the Navy Yard, they’re going to need it. It’s a very mass transit-based downtown area, so they need it if they want to compete with Center City or West Philly.”

Traffic has started to become an issue at the Navy Yard, whose weekday population has swelled to about 10,000 and could grow by another 5,000.

In University City, Garberson says, “I think you see a majority of the construction happening there,” noting that the former University City High School has been demolished and the five acre site is being redeveloped by Drexel University City Development, a joint venture between Drexel University and Wexford Science & Technology.

Thursday, November 19, 2015

Richard LeFrak: Golden age of Apartment Investing (Video)

Power Home Remodeling Leases 105,000 SF at The Wharf

Power Home Remodeling Group signed a five-year lease for 104,661 square feet at The Wharf at Rivertown - Building 1 located at 2501 Seaport Dr. in Chester, PA.

The six-story, 398,000-square-foot, 4-Star office building was constructed in 1916 on 1.5 acres in the Delaware County submarket of Philadelphia. The waterfront property was renovated in 2004 and features a fitness center and food court.