Wal-Mart, a nationwide and world-renowned retailer, signed a long-term lease for 1.2 million square feet in the Lehigh Industrial Park VII distribution building at 2785 Commerce Center Blvd. in Bethlehem, PA.
This online fulfillment center, the company's largest fulfillment center in the United States to date, will employ 350 people while delivering orders in a timelier manner at a reduced cost. The facility will also house electronics, toys, apparel, fitness/sporting goods, and other products that will be available for shipment. Walmart will also serve as the property manager for their new facility.
The 1.2 million-square-foot building was constructed in 2012 on 86.2 acres in the Lehigh Valley Industrial submarket of Northampton County. It features 142 loading docks, 32-foot clear heights, 4,000-amp heavy power, and seven-inch floors able to support 4,000 pounds per square foot.
www.omegare.com
Thursday, October 3, 2013
Cooper Center Sold for $10.5M
Cooper Park Associates, LP acquired six multi-tenant office and flex properties known as Cooper Center and Cooper Center West in Pennsauken, NJ. The Bloom Organization sold the properties for $10.5 million, or about $75 per square foot.
Totaling 136,940 square feet, the buildings were constructed in the mid 1970's. At the time of closing the asset was reportedly 94 percent leased.
www.omegare.com
Totaling 136,940 square feet, the buildings were constructed in the mid 1970's. At the time of closing the asset was reportedly 94 percent leased.
www.omegare.com
Agree Realty Pays $10.6M for Retail Bldg
Agree Realty Corporation acquired the BJ's Wholesale Club building at 1785 Airport Rd. in Allentown, PA from DDR Corp. for $10.6 million, or about $94 per square foot.
The retail building was delivered in 1991, and totals 112,230 square feet on 11.4 acres. BJ's Wholesale Club is the sole occupant of the property, with a lease expiring at the end of 2016.
www.omegare.com
The retail building was delivered in 1991, and totals 112,230 square feet on 11.4 acres. BJ's Wholesale Club is the sole occupant of the property, with a lease expiring at the end of 2016.
www.omegare.com
Wednesday, October 2, 2013
New Jersey's Industrial Building Sector Beats Back Sandy
When superstorm Sandy hit parts of New Jersey, it sparked concerns about future investor demand for commercial real estate in the waterlogged region.
Nearly a year later, only some of those fears have materialized. Sales growth for office, retail and apartment properties overall in New Jersey has slowed somewhat, according to Real Capital Analytics, a real-estate research firm. But in Northern New Jersey, which includes areas less affected by the storm, sales of industrial properties are on pace to hit a record high this year.
Northern New Jersey also is outperforming the national industrial market. Nationwide, the volume of industrial sales valued at $2.5 million or higher are on pace to hit about $37 billion this year. That is still shy of the annual peak of $60.8 million set in 2007, according to Real Capital Analytics. Total sales volume of industrial properties 100,000 square feet or larger hit $1.02 billion as of the middle of September. That is a 64% increase from $623 million in all of 2012, and surpasses the previous record of $922 million in northern New Jersey industrial transactions in 2006.
"Everyone wants to know if Sandy impacted buildings but at the end of the day there's still a need to be close to [New York City]," said Kyle Schmidt, a broker who specializes in industrial sales with Cushman & Wakefield. Mr. Schmidt said that while investors prefer buildings outside of flood plains, when necessary they are willing to pay the higher insurance premiums to have access to one of the nation's biggest industrial markets. Even properties in the Meadowlands, a marshy area prone to flooding, are prized by many investors because of the area's proximity to Manhattan.
Among the most noteworthy deals is the recent sale of a 887,000-square-foot warehouse in Cranbury, N.J., about 45 miles southwest of New York City, purchased for $98 million by the California Public Employees' Retirement System. The property fetched 20% more than what Exeter Property Group paid two years ago, and it was one of the largest single-property warehouse deals in the region since the financial crisis. Calpers, the giant pension fund, declined to comment.
To be sure, the flurry of deals in northern New Jersey is partly fueled by a rising pack of large institutional investors that are bulking up on warehouses. Blackstone Group LP has made a series of large acquisitions since the downturn to become one of the largest U.S. owners of warehouses and distribution centers.
More recently, Brookfield Asset Management has agreed to acquire Industrial Developments International Inc. Calpers is expected to invest several billion dollars in the next three to five years on industrial properties, according to Martin Standiford, a senior vice president of acquisitions with adviser Bentall Kennedy. The firm represented Calpers in the purchase of the Cranbury property.
With the deal flow recovering faster than some areas' rents and occupancies, analysts and investors are on the lookout for overheating. Exeter Property Group, which sold the Cranbury building, say it would cheer rising prices because its strategy is to buy properties in need of improvement and then sell. "A run up in prices is good for us on the exit," said Ward Fitzgerald, Exeter's chief executive.
While industrial properties are among the least glamorous sectors in commercial real estate, the returns tend to be higher than what office buildings or apartments offer. Some analysts say the improving economy means a greater need for warehouse space for consumer goods and housing-construction materials.
Northern New Jersey is one of Calpers' target markets, according to Mr. Standiford. He said the property's long-term tenant along with its unusually high ceilings and solar panels made it an attractive investment. In addition, it isn't in the flood plain and the building wasn't affected by Sandy. "That's the acid test," Mr. Standiford said. Hopefully you only have one of those storms every 20 years or so."
Tuesday, October 1, 2013
PREIT Divests Two Shopping Centers for $87.3M
Pennsylvania Real Estate Investment Trust (NYSE: PEI) has sold two retail power centers in conjunction with its strategic plan to dispose of non-core properties in the hopes of strengthening its balance sheet by reducing debt.
In two separate transactions, the REIT sold Christiana Center in Newark, DE and the Commons at Magnolia in Florence, SC for an aggregate sales price of $87.3 million, representing a blended CAP rate of 6.8% and net gains totaling nearly $45.4 million.
The Kroenke Group acquired Christiana Center at 100-900 Center Blvd. in Newark, DE for $75 million, or about $245 per square foot.
The 306,140-square-foot retail center was built in 1978 on 72 acres in the South New Castle County submarket of Philadelphia. The asset is anchored by a free-standing Costco, Dick's Sporting Goods, HHGregg, Michael's, Pier1, and Petco.
In connection with this sale, the buyer assumed the $49.2 million mortgage secured by the center.
In a separate transaction, Chase Properties Ltd. acquired The Commons at Magnolia, located at 2791-2895 David H McLeod Blvd. in Florence, SC for $12.3 million, or about $119 per square foot.
The 103,683-square-foot shopping center was built in 1991 on 7.9 acres in Florence County. It is anchored by Bed Bath & Beyond, PetSmart and Rack Room Shoes.
PREIT intends to use the proceeds from these two sales to make further reductions in debt and for general corporate purposes. The group has already reduced its debt by $359 million in 2013, primarily through the disposition of non-core assets and the successful offering of common equity, according to Joseph F. Coradino, CEO of PREIT.
www.omegare.com
In two separate transactions, the REIT sold Christiana Center in Newark, DE and the Commons at Magnolia in Florence, SC for an aggregate sales price of $87.3 million, representing a blended CAP rate of 6.8% and net gains totaling nearly $45.4 million.
The Kroenke Group acquired Christiana Center at 100-900 Center Blvd. in Newark, DE for $75 million, or about $245 per square foot.
The 306,140-square-foot retail center was built in 1978 on 72 acres in the South New Castle County submarket of Philadelphia. The asset is anchored by a free-standing Costco, Dick's Sporting Goods, HHGregg, Michael's, Pier1, and Petco.
In connection with this sale, the buyer assumed the $49.2 million mortgage secured by the center.
In a separate transaction, Chase Properties Ltd. acquired The Commons at Magnolia, located at 2791-2895 David H McLeod Blvd. in Florence, SC for $12.3 million, or about $119 per square foot.
The 103,683-square-foot shopping center was built in 1991 on 7.9 acres in Florence County. It is anchored by Bed Bath & Beyond, PetSmart and Rack Room Shoes.
PREIT intends to use the proceeds from these two sales to make further reductions in debt and for general corporate purposes. The group has already reduced its debt by $359 million in 2013, primarily through the disposition of non-core assets and the successful offering of common equity, according to Joseph F. Coradino, CEO of PREIT.
www.omegare.com
Friday, September 27, 2013
Lowe Enterprises Lands $40M Bridge Loan for Condo Conversion
A pension fund client of Los Angeles-based real estate investment manager Lowe Enterprises Investors secured a $40 million bridge loan for the Abitare Apartments, a 353-unit, nine-building multifamily development in Voorhees, N.J.
Built in 2009, the community is located at 10000 Towncenter Boulevard in the Voorhees Town Center, a 732,000-square-foot mixed-use development that includes an enclosed mall anchored by Macy’s and Boscov’s.
The three-year, floating rate loan with Capital One Bank will be used to retire existing financing, buy out a ground lease, and finish converting previously planned condominium units at the property into rental units.
A team from HFF team represented Lowe Enterprises and its client in securing the financing. HFF Managing Director Jim Cadranell and Associate Director Michael Lachs handled the transaction.
Earlier this month, Lowe Enterprises named Woodmont Properties to serve as the property, development and construction manager for its Abitare Apartments.
www.omegare.com
Built in 2009, the community is located at 10000 Towncenter Boulevard in the Voorhees Town Center, a 732,000-square-foot mixed-use development that includes an enclosed mall anchored by Macy’s and Boscov’s.
The three-year, floating rate loan with Capital One Bank will be used to retire existing financing, buy out a ground lease, and finish converting previously planned condominium units at the property into rental units.
A team from HFF team represented Lowe Enterprises and its client in securing the financing. HFF Managing Director Jim Cadranell and Associate Director Michael Lachs handled the transaction.
Earlier this month, Lowe Enterprises named Woodmont Properties to serve as the property, development and construction manager for its Abitare Apartments.
www.omegare.com
Subscribe to:
Posts (Atom)
