International investment firm KKR made its entry into Pennsylvania’s Lehigh Valley market with its acquisition of a distribution warehouse that opened last year and is leased to one of the nation’s largest logistics and trucking companies.
The New York-based firm bought the 600,238-square-foot property at 30 Ludwig Court in Shoemakersville, Pennsylvania, from developer The Keith Corporation, according to CoStar research and a statement from KKR.
The price was not disclosed. The average sale price of industrial properties in the Lehigh Valley area is $85 per square foot, according to CoStar. At that rate, the property would be valued at $51 million.
Ryder Integrated Logistics, a division of Miami-based logistics and trucking company Ryder, occupies the entire property, according to CoStar research. Ryder operates more than 300 warehouses spanning 55 million square feet across the nation, according to its website.
This is KKR’s first industrial purchase in Pennsylvania’s sprawling Lehigh Valley, which is the state's third-largest metropolitan area and has 132 million square feet of industrial space.
The property sits roughly 70 miles northwest of Philadelphia and 120 miles from New York City. The Lehigh Valley's proximity to those cities as well as Boston has helped to establish the area as a significant East Coast logistics market.
“Some of the biggest names in logistics occupy millions of square feet here."
In the past 10 years, Walmart, Amazon, Kellogg’s and Nestle have all signed industrial leases for more than 1 million square feet in the area, according to CoStar research.
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