by Steve Lubetkin, Globest.com
The Eastern Pennsylvania Big-Box/Logistics Market posted strong gains across most submarkets so far this year.
Led by the Lehigh Valley/I-78 Submarket, where overall growth topped 8 percent year to date, the performance contributed significantly to overall market growth of more than three percent. This level of growth would rank the Eastern PA Region as one of the most-rapidly growing markets in the US.
The report is for influencing factors in six major North American distribution markets for industrial properties 300,000 square feet or larger. Supply chain modernization—which is still in its infancy—and positive e-commerce sector growth continue to bolster the US industrial real estate market, particularly big-box, which is experiencing a record number of tenants in the market.
Among the key findings in the research regarding Eastern PA:
Record construction deliveries - new deliveries topped 6.7 million square feet and are on track to total over 15 million square feet by year end.
Strong occupier activity – by mid-year there were more than six million square feet of new occupier transactions. The top five occupier transactions, included Starbucks (1.2 million square feet) in Manchester PA; An undisclosed user in Easton (1.1 million square feet); Hudson Bay (617,000 square feet) in Pottsville; Cal Cartage (538,650 square feet) in Bethlehem and Samsung (750,000 square feet) in Bethel.
Substantial rent growth – especially in the Lehigh Valley, where achievable market rents now top $5 per square foot.
Increased supply – primarily weighted by Central Pennsylvania/I-81 South, overall supply increased slightly, leading to a 38 basis point increase in vacancy rate from year end 2015.
Growing activity pipeline – new occupier activity and anticipated deals should result in a higher volume of transactions during the second half of 2016. With lower vacancies, higher effective rents and strong absorption, demand will continue to outpace supply in core markets.
In the extended New Jersey/Lehigh Valley/Eastern Pennsylvania market, demand from logistics and e-commerce users continues to make the region one of the most robust in the country. Big-box leasing activity has more than doubled between Q2 2015 and Q2 2016. During the first half of 2016, a total of 18.4 million square feet was leased, the most for a core North American market.
www.omegare.com
Wednesday, October 5, 2016
Tuesday, October 4, 2016
Liberty Property Trust Completes Sale of 108 Properties for $969 Million
by Natalie Kostelni, Staff writer the Philadelphia Business Journal
Liberty Property Trust has completed a nearly $1 billion sale of 108 properties in five markets to Workspace Property Trust.
The deal had been in the works since the beginning of the year and was expected to close late in the third quarter.
All of the properties Liberty is selling are in the suburbs of Philadelphia, as well as in Arizona, Florida and Minnesota. The assets total 7.6 million square feet. The transaction makes inroads on the company's strategy to exit suburban office markets and concentrate on industrial warehouse and distribution centers as well as urban centers such as Philadelphia and Washington D.C.
With this transaction final, Liberty has sold $1.2 billion in real estate so far this year.
Thirty of the properties, which total a tad more than 2 million square feet, are in Pennsylvania. The bulk of that space, or 1.2 million square feet, consists of office space.
Workspace Property, based in Horsham, Pennsylvania, bought the properties in a partnership with Safanad Ltd., a global investment firm. The portfolio included 26.7 acres of land and the buildings involved were 88.1 percent leased at the time of the sale.
Liberty will continue to own buildings it leases to Vanguard Group in the Great Valley Corporate Center as well as several redevelopment sites in the office park. The real estate investment trust will also hold onto its King of Prussia properties but will jettison buildings in the Chesterbrook Corporate Center.
Liberty Property Trust has completed a nearly $1 billion sale of 108 properties in five markets to Workspace Property Trust.
The deal had been in the works since the beginning of the year and was expected to close late in the third quarter.
All of the properties Liberty is selling are in the suburbs of Philadelphia, as well as in Arizona, Florida and Minnesota. The assets total 7.6 million square feet. The transaction makes inroads on the company's strategy to exit suburban office markets and concentrate on industrial warehouse and distribution centers as well as urban centers such as Philadelphia and Washington D.C.
With this transaction final, Liberty has sold $1.2 billion in real estate so far this year.
Thirty of the properties, which total a tad more than 2 million square feet, are in Pennsylvania. The bulk of that space, or 1.2 million square feet, consists of office space.
Workspace Property, based in Horsham, Pennsylvania, bought the properties in a partnership with Safanad Ltd., a global investment firm. The portfolio included 26.7 acres of land and the buildings involved were 88.1 percent leased at the time of the sale.
Liberty will continue to own buildings it leases to Vanguard Group in the Great Valley Corporate Center as well as several redevelopment sites in the office park. The real estate investment trust will also hold onto its King of Prussia properties but will jettison buildings in the Chesterbrook Corporate Center.
Germany’s Union Investment Makes First Acquisitions in U.S. Retail Properties
Union Investment is further diversifying its international real estate portfolio by making its first investments in U.S. urban retail. Union is acquiring a 49% stake in four high street properties with a total area of 113,500 square feet for its open-ended real estate fund Unimmo: Global.
The buy will be done via a joint venture with TH Real Estate (a division of TIAA Global Asset Management). London-based TH Real Estate last month unveiled its U.S. Cities Fund series, a re-launch of the $2 billion TIAA-CREF Core Property Fund LP that plans to invest in retail, office, industrial and multifamily properties in major urban markets in the U.S. The four assets are owned by this fund, which originally paid $150 million for them.
TH Real Estate will act as the managing member and will continue to hold a 51% stake in the portfolio.
The four properties are located in prime shopping locations in New York, San Francisco and Philadelphia. The purchase price is not disclosed.
Two of the properties that make up the urban retail portfolio are in New York and together represent around 70% of the total value. Located in the Upper East Side of New York, 1511 Third Ave., which comprises approximately 43,300 square feet, is occupied by fashion retailer GAP and a fitness studio. TIAA-CREF acquired the property in December 2012 for $60 million.
In 636 Sixth Ave., 18,300 square feet of ground floor space belongs to the portfolio and is let to CVS Pharmacy on a long lease. TIAA bought the first floor condo in December 2014 for $42 million.
The remaining 30% of the portfolio is split between 856 Market St. in San Francisco and 1608 Chestnut St. in Philadelphia. The tenant of the approximately 9,100 square feet of space close to Union Square in San Francisco is sportswear manufacturer New Balance. TIAA acquired the property in October 2014 for $23.5 million.
The property in Philadelphia is located in the City Center, the historic and cultural heart of the city. The entire 42,800 square feet three-story building, which is let to Japanese fashion retailer Uniqlo, belongs to the portfolio. TIAA paid $24.5 million for the building in December 2014.
This deal marks Union Investment’s first step in building a retail portfolio in the U.S. The company’s investment strategy targets the full spectrum of the retail property universe, from urban retail to grocery anchored shopping centers and malls.
“Diversification and internationalization are two strategic goals for our retail portfolio that go hand in hand. Four properties in major cities with global reputations are an excellent start in the US market, with our ambition being to significantly increase our retail exposure,” said Henrike Waldburg, head of retail investment management at Union Investment Real Estate GmbH.
www.omegare.com
The buy will be done via a joint venture with TH Real Estate (a division of TIAA Global Asset Management). London-based TH Real Estate last month unveiled its U.S. Cities Fund series, a re-launch of the $2 billion TIAA-CREF Core Property Fund LP that plans to invest in retail, office, industrial and multifamily properties in major urban markets in the U.S. The four assets are owned by this fund, which originally paid $150 million for them.
TH Real Estate will act as the managing member and will continue to hold a 51% stake in the portfolio.
The four properties are located in prime shopping locations in New York, San Francisco and Philadelphia. The purchase price is not disclosed.
Two of the properties that make up the urban retail portfolio are in New York and together represent around 70% of the total value. Located in the Upper East Side of New York, 1511 Third Ave., which comprises approximately 43,300 square feet, is occupied by fashion retailer GAP and a fitness studio. TIAA-CREF acquired the property in December 2012 for $60 million.
In 636 Sixth Ave., 18,300 square feet of ground floor space belongs to the portfolio and is let to CVS Pharmacy on a long lease. TIAA bought the first floor condo in December 2014 for $42 million.
The remaining 30% of the portfolio is split between 856 Market St. in San Francisco and 1608 Chestnut St. in Philadelphia. The tenant of the approximately 9,100 square feet of space close to Union Square in San Francisco is sportswear manufacturer New Balance. TIAA acquired the property in October 2014 for $23.5 million.
The property in Philadelphia is located in the City Center, the historic and cultural heart of the city. The entire 42,800 square feet three-story building, which is let to Japanese fashion retailer Uniqlo, belongs to the portfolio. TIAA paid $24.5 million for the building in December 2014.
This deal marks Union Investment’s first step in building a retail portfolio in the U.S. The company’s investment strategy targets the full spectrum of the retail property universe, from urban retail to grocery anchored shopping centers and malls.
“Diversification and internationalization are two strategic goals for our retail portfolio that go hand in hand. Four properties in major cities with global reputations are an excellent start in the US market, with our ambition being to significantly increase our retail exposure,” said Henrike Waldburg, head of retail investment management at Union Investment Real Estate GmbH.
www.omegare.com
Cornwells Station Apartments In Bensalem Trade For Nearly $8.6 Million
by Steve Lubetkin, Globest.com
Primavera Properties, a private developer in Sharon Hill, PA, acquired Cornwells Station Apartments, a 119-unit apartment complex in Bensalem, Bucks County, PA, from the complex’s private owners for $8.55 million.
Cornwells Station Apartments was built in 1968 and, before Kislak’s engagement, had never been on the market. The property offers one-bedroom and two-bedroom units, all with spacious floor plans, eat-in kitchens, and large walk-in closets. Before the sale, select units were upgraded with new kitchens and bathrooms.
“The marketing of Cornwells Station Apartments provided investors with an opportunity to acquire a highly desirable property in Bucks County. Due to continued investor demand for multifamily properties, along with a large value-add component, we were able to achieve a very aggressive price for property.”
“The purchaser saw potential in the property to upgrade it further since it was owned by original developer. The purchaser intends to invest a significant amount of capital into the property while bringing rents to market on turnovers.”
Cornwells Station Apartments is located directly across the street from the Cornwells Station rail station. The station is served by SEPTA’s Trenton Line, which provides access between Center City Philadelphia and Trenton, NJ. The property also offers easy access to Interstate 95, Pennsylvania Turnpike and Route 1.
www.omegare.com
Primavera Properties, a private developer in Sharon Hill, PA, acquired Cornwells Station Apartments, a 119-unit apartment complex in Bensalem, Bucks County, PA, from the complex’s private owners for $8.55 million.
Cornwells Station Apartments was built in 1968 and, before Kislak’s engagement, had never been on the market. The property offers one-bedroom and two-bedroom units, all with spacious floor plans, eat-in kitchens, and large walk-in closets. Before the sale, select units were upgraded with new kitchens and bathrooms.
“The marketing of Cornwells Station Apartments provided investors with an opportunity to acquire a highly desirable property in Bucks County. Due to continued investor demand for multifamily properties, along with a large value-add component, we were able to achieve a very aggressive price for property.”
“The purchaser saw potential in the property to upgrade it further since it was owned by original developer. The purchaser intends to invest a significant amount of capital into the property while bringing rents to market on turnovers.”
Cornwells Station Apartments is located directly across the street from the Cornwells Station rail station. The station is served by SEPTA’s Trenton Line, which provides access between Center City Philadelphia and Trenton, NJ. The property also offers easy access to Interstate 95, Pennsylvania Turnpike and Route 1.
www.omegare.com
Monday, October 3, 2016
Coretrust to Acquire Office Condo in Philadelphia
Coretrust Capital Partners has put 940,000 square feet under contract at 50 S. 16th St. in Philadelphia, PA for approximately $200 milion, or roughly $213 per square foot.
The seller of the lower 36 floors of Two Liberty Place is Parkway Properties. It is located between Market and Chestnut Streets in Philadelphia's CBD.
Constructed in 1990 in the Market West submarket as part of the Murphy/Helmut Jahn-designed Liberty Place development, the building offers close proximity to hotels, retail and restaurant options. Access to public transportation with the 30th Street Station is within walking distance of the property. Major tenants include Cigna, which recently signed a new 12-year lease for 322,000 square feet, Unisys Corporation, Buchanan Ingersoll, Republic Bank, Eckert Seamans.
The acquisition will be Coretrust's first acquisition in Philadelphia when it closes, subject to customary conditions. Coretrust will likely update the lobby, common areas and amenities. Most of the vacant space in the building is located on a three-floor contiguouse block, making it one of the largest blocks of available office space in the Market West submarket.
www.omegare.com
The seller of the lower 36 floors of Two Liberty Place is Parkway Properties. It is located between Market and Chestnut Streets in Philadelphia's CBD.
Constructed in 1990 in the Market West submarket as part of the Murphy/Helmut Jahn-designed Liberty Place development, the building offers close proximity to hotels, retail and restaurant options. Access to public transportation with the 30th Street Station is within walking distance of the property. Major tenants include Cigna, which recently signed a new 12-year lease for 322,000 square feet, Unisys Corporation, Buchanan Ingersoll, Republic Bank, Eckert Seamans.
The acquisition will be Coretrust's first acquisition in Philadelphia when it closes, subject to customary conditions. Coretrust will likely update the lobby, common areas and amenities. Most of the vacant space in the building is located on a three-floor contiguouse block, making it one of the largest blocks of available office space in the Market West submarket.
www.omegare.com
Dranoff Properties Secures $116M for One Theater Square Development
Dranoff Properties secured $116 million in construction financing for its proposed One Theater Square residential condominium development set to rise at 2 Center St. in Newark, NJ.
Prudential Financial Corp. and Fifth Third Bank provided the financing along with public funding from the city and state.
BLT Architects is set to begin work on the 22-story, 259,000-square-foot multifamily project by year-end, with an anticipated delivery date of the 245 units in mid-2018.
www.omegare.com
Prudential Financial Corp. and Fifth Third Bank provided the financing along with public funding from the city and state.
BLT Architects is set to begin work on the 22-story, 259,000-square-foot multifamily project by year-end, with an anticipated delivery date of the 245 units in mid-2018.
www.omegare.com
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