By Paul Schwedelson – Reporter, Philadelphia Business Journal
Investment giant KKR bought three Philadelphia-area warehouses as part of a $377 million acquisition of six total properties across the U.S. that are all fully leased.
KKR (NYSE: KKR) declined to share details about individual properties within the portfolio.
Data from real estate research firm CoStar Group show the three local warehouses sold for a combined $198 million.
Below, the three properties and sales price, according to CoStar:
Amazon’s 650,000-square-foot fulfillment center at 240 Mantua Grove Road in West Deptford, New Jersey. The building sold for $90.8 million.
Dunkin’s 301,872 square-foot distribution center at 20 E. Park Drive in Westampton, New Jersey. The building sold for $61 million.
Penn Jersey Packaging’s 255,336-square-foot warehouse at 9355 Blue Grass Road in Philadelphia. The building sold for $46.2 million.
The buildings were previously owned by New York-based Link Logistics, according to the company's website and property records. Link Logistics is the industrial real estate arm of asset manager Blackstone Group.
The Amazon fulfillment center at 240 Mantua Grove Road in West Deptford last traded for $78 million in 2019, according to property records. Built in 2018, it has a 41-foot clear height and 57 dock doors.
Located near Northeast Philadelphia Airport, the 255,336-square-foot warehouse at 9355 Blue Grass Road last traded for $26.1 million in 2015. The warehouse was built in 2011 with a 32-foot clear height and 40 dock doors.
The transaction comes as the Philadelphia region’s industrial market has transitioned away from large-scale buildings of more than 500,000 square feet. Tenant demand has shifted from larger types of buildings to smaller properties in the 200,000-square-foot or 300,000-square-foot range.
The six properties KKR bought are an average of 10 years old with 35-foot clear heights. They’re all fully leased to a “high-quality tenant mix,” KKR said in a news release.
The other markets where properties were bought include Seattle, Atlanta and San Francisco. Since January, New York-based KKR has bought nearly six million square feet of industrial space.
Full story: https://tinyurl.com/yn79dhdh
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