A joint venture between Wharton Industrial Partners and Walton Street Capital purchased a 283,500-square-foot industrial facility in Philadelphia from Rimas Properties for $16.75 million, or $59 per square foot.
The vacant building at 2400 South Weccacoe Ave. was previously occupied by Hyundai Rotem, a South Korean company that made train cars for SEPTA that vacated the property in 2018. Built in 1970, the property spans 13.5 acres near the Port of Philadelphia, Philadelphia International Airport, Interstates 95, 295 and 76 and just three miles from Philadelphia City Hall.
The new ownership plans on making improvements to the property upwards of $10 million. Once completed in early 2020, the building will be rebranded as SoPhi Logistics Center.
"The buyer was attracted to the location of this facility being adjacent to the Packer Avenue Marine Terminal and its close proximity to Center City and University City."
www.omegare.com
Monday, September 16, 2019
Experts Predict Industrial #CRE Markets Will Weather Tariff Headwinds
by John Jordan Globest.com
Real estate developers and investors at a recent two-day industrial real estate summit concluded that the market’s continued decade long-run of strong growth will continue with lower vacancy and higher rental rates in top markets despite some economic headwinds.
“The industrial sector has experienced significant growth over the past 10 years as ecommerce and supply chain realignment have reshaped the way businesses utilize industrial space and deliver goods to businesses and consumers. While there is concern regarding the long-term impact of tariffs and the potential for an economic downturn, we expect the industrial sector to weather any storm and maintain positive momentum.”
The top markets are land-constrained and port-centric. The top industrial markets expected to continue to perform well into 2020 will be: California’s Inland Empire, Dallas, New Jersey/New York City, Seattle, Chicago, and Miami, among others.
“Industrial remains one of the top investment classes, buoyed by corporate supply chain expansion and the ability to generate stable returns without the volatility seen in other market sectors. As we head toward 2020, we’re seeing investors focus on reducing risk and returning to core investments that can provide steady income growth.”
In addition to economic instability and tariffs on Chinese imports as potential headwinds that could limit investment growth, summit participants say other negative influences could be overbuilding and rental rate stagnation in some markets.
Chicago-based CenterPoint Properties, pointed to Seattle, Los Angeles, Miami, Oakland and New Jersey as markets that have seen record growth and markets that will offer long-term stability even if an economic downturn takes place.
“We are looking for rental growth that doesn’t have a lot of volatility. Markets with low vacancy rates, strong rental rates and proximity to ports should continue to fare well into 2020.”
Most U.S. industrial markets tracked are reporting single digit vacancy rates, despite the influx of new product. The strong demand and tight supply are also putting upward pressure on rents in many markets.
Rent growth is a key indicator driving investment decisions, said Jojo Yap, chief investment officer and co-founder of First Industrial Realty Trust of Chicago, which has 63 million square feet of industrial assets in its portfolio and another 5 million square feet under development.
“A driving force for making profitable investments and avoiding capital and value destruction is increasing net operating income. We are very focused on investing in submarkets where we can achieve above average rent growth. Last quarter we boasted the highest rent growth of all national industrial REITs at 13.4% cash on cash on new and renewal leasing. That was the highest in our 25-year history.”
The firm has shifted its portfolio in recent years to increase its holdings in coastal markets, given the potential for higher rental rates. “Twenty percent of our portfolio income is in Southern California—and growing—and overall the coastal, high barrier markets now represent more than 40% of our portfolio income."
“Rental rates are increasing at higher rates in coastal markets. We have seen increases of 40% or more on some rollovers in the South Bay area of Los Angeles and north of 25% in Miami,” he added.
www.omegare.com
Real estate developers and investors at a recent two-day industrial real estate summit concluded that the market’s continued decade long-run of strong growth will continue with lower vacancy and higher rental rates in top markets despite some economic headwinds.
“The industrial sector has experienced significant growth over the past 10 years as ecommerce and supply chain realignment have reshaped the way businesses utilize industrial space and deliver goods to businesses and consumers. While there is concern regarding the long-term impact of tariffs and the potential for an economic downturn, we expect the industrial sector to weather any storm and maintain positive momentum.”
The top markets are land-constrained and port-centric. The top industrial markets expected to continue to perform well into 2020 will be: California’s Inland Empire, Dallas, New Jersey/New York City, Seattle, Chicago, and Miami, among others.
“Industrial remains one of the top investment classes, buoyed by corporate supply chain expansion and the ability to generate stable returns without the volatility seen in other market sectors. As we head toward 2020, we’re seeing investors focus on reducing risk and returning to core investments that can provide steady income growth.”
In addition to economic instability and tariffs on Chinese imports as potential headwinds that could limit investment growth, summit participants say other negative influences could be overbuilding and rental rate stagnation in some markets.
Chicago-based CenterPoint Properties, pointed to Seattle, Los Angeles, Miami, Oakland and New Jersey as markets that have seen record growth and markets that will offer long-term stability even if an economic downturn takes place.
“We are looking for rental growth that doesn’t have a lot of volatility. Markets with low vacancy rates, strong rental rates and proximity to ports should continue to fare well into 2020.”
Most U.S. industrial markets tracked are reporting single digit vacancy rates, despite the influx of new product. The strong demand and tight supply are also putting upward pressure on rents in many markets.
Rent growth is a key indicator driving investment decisions, said Jojo Yap, chief investment officer and co-founder of First Industrial Realty Trust of Chicago, which has 63 million square feet of industrial assets in its portfolio and another 5 million square feet under development.
“A driving force for making profitable investments and avoiding capital and value destruction is increasing net operating income. We are very focused on investing in submarkets where we can achieve above average rent growth. Last quarter we boasted the highest rent growth of all national industrial REITs at 13.4% cash on cash on new and renewal leasing. That was the highest in our 25-year history.”
The firm has shifted its portfolio in recent years to increase its holdings in coastal markets, given the potential for higher rental rates. “Twenty percent of our portfolio income is in Southern California—and growing—and overall the coastal, high barrier markets now represent more than 40% of our portfolio income."
“Rental rates are increasing at higher rates in coastal markets. We have seen increases of 40% or more on some rollovers in the South Bay area of Los Angeles and north of 25% in Miami,” he added.
www.omegare.com
Friday, September 13, 2019
Thursday, September 12, 2019
T.J. Maxx Inks Deal at West Sadsbury Commons
National department store company T.J. Maxx leased 20,043 square feet at West Sadsbury Commons in Parkesburg, Pennsylvania.
The 84,026-square-foot building at 200-400 Commons Drive was completed in 2002. Spanning north of 136 acres, the power center is less than 20 miles from Lancaster.
www.omegare.com
The 84,026-square-foot building at 200-400 Commons Drive was completed in 2002. Spanning north of 136 acres, the power center is less than 20 miles from Lancaster.
www.omegare.com
Wednesday, September 11, 2019
Comcast Technology Center wins global ULI award
Natalie Kostelni Reporter Philadelphia Business Journal
Comcast Technology Center was a recipient of this year’s Urban Land Institute’s annual Global Awards for Excellence, which is considered one of the development industry’s most prestigious awards programs.
The building at 1800 Arch St. in Philadelphia was among 11 projects from across the globe to be recognized this year. The competition consisted of seven developments in the United States, three in Asia and one in Europe. A diverse international panel from different disciplines judged the nominations. Locally, Antonio Fiol-Silva, founding principal, SITIO Architecture and Urbanism, a Philadelphia firm, served as a judge.
Each of the winners “demonstrates a comprehensive level of quality and a forward-looking approach to development and design,” according to ULI.
Comcast Technology Center also wont the local ULI Philadelphia Rouse Award. The building was developed by Liberty Property Trust (NYSE: LPT) and designed by Foster and Partners for Comcast Corp. (NASDAQ: CMCSA) The $1.5 billion mixed-use projects totals 1.2 million square feet and stands 60 stories. Comcast houses 4,000 employees in the tower. In addition to the office space, the building has a Four Seasons Hotel with 219 rooms and 15,000 square feet of meeting space as well as two restaurants: Vernick Fish and Jean-Georges.
Full story: https://tinyurl.com/yxb3sk25
www.omegare.com
Comcast Technology Center was a recipient of this year’s Urban Land Institute’s annual Global Awards for Excellence, which is considered one of the development industry’s most prestigious awards programs.
The building at 1800 Arch St. in Philadelphia was among 11 projects from across the globe to be recognized this year. The competition consisted of seven developments in the United States, three in Asia and one in Europe. A diverse international panel from different disciplines judged the nominations. Locally, Antonio Fiol-Silva, founding principal, SITIO Architecture and Urbanism, a Philadelphia firm, served as a judge.
Each of the winners “demonstrates a comprehensive level of quality and a forward-looking approach to development and design,” according to ULI.
Comcast Technology Center also wont the local ULI Philadelphia Rouse Award. The building was developed by Liberty Property Trust (NYSE: LPT) and designed by Foster and Partners for Comcast Corp. (NASDAQ: CMCSA) The $1.5 billion mixed-use projects totals 1.2 million square feet and stands 60 stories. Comcast houses 4,000 employees in the tower. In addition to the office space, the building has a Four Seasons Hotel with 219 rooms and 15,000 square feet of meeting space as well as two restaurants: Vernick Fish and Jean-Georges.
Full story: https://tinyurl.com/yxb3sk25
www.omegare.com
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