Friday, May 25, 2012

KTR Scoops Up 1.8M SF of I-81 Industrial

"An affiliate of New York City-based KTR Capital Partners has bought a pair of class A bulk warehouses totaling 1.8 million square feet along the I-81 industrial corridor here.  Hillwood, nor KTR disclosed the purchase price; published reports say KTR paid a total of $93.3 million for the assets at 950 Centerville Rd. and 1700 Ritner Hwy. A KTR spokeswoman declines to comment on those reports.
Completed in 2008, 950 Centerville is a 1.2-million-square-foot cross-dock facility, part of the Key Logistics Park and currently 50% leased. 1700 Ritner is a 602,500-square-foot front-load facility that was developed in 2006; it’s leased long-term to a single tenant.
 The deal “highlights the attraction of institutional capital to the top-tier central Pennsylvania industrial submarket and illustrates the strong demand for state-of-the-art, class A bulk distribution facilities in this region,” Hines says in a release.
At KTR, PJ Charlton, SVP of Investments, says in a release that the acquisition was an opportunity to buy "functional new product in a highly sought after market on an off-market basis." He adds that the I-81 corridor is a strategic location for logistics-driven users looking to serve the East Coast, "and because of that, central Pennsylvania has become a top tier market for institutional investors."
Charlton notes that the market has performed "favorably" over the past 24 months with over six million square feet of positive absorption and a vacancy rate of less than 9%. "Presently, there are very few large class A availabilities remaining in central Pennsylvania, which positions us well to capitalize on the demand for high quality distribution space at 950 Centerville Rd.," he adds. KTR’s portfolio in the region has now reached 8.5 million square feet, and the company is seeking out acquisition and development opportunities in Pennsylvania, New Jersey and Maryland, Charlton says."

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