Wednesday, August 31, 2016
Philadelphia Seventh Among Markets Without Enough Self-Storage
by Steve Lubetkin, Globest.com
Philadelphia ranks seventh among markets without sufficient self-storage capacity.
“Analysis by major Metro Markets can be useful for comparison from a national perspective but these metrics should not be relied upon for local area analysis. Factors that affect local self-storage product type include zoning regulations, local demographics, household income and density, among others.The best analytics for this sector are by local trade area. From our Investor Surveys and zip code studies of existing facilities, it is clear the trade area for self-storage is relatively small, generally within a three-mile radius for a typical suburban property.”
The report ranks market conditions overlaid with a scoring model based on occupancy, income, and cap rate data in top Metro markets based on REIS data, along with cap rate data. The result is a ranking of top Metro Markets for self-storage, segmented among top performers and market conditions (under-supply, over-supply, or equilibrium).
Among the markets identified in the report as having too much self-storage supply are: Oklahoma City, Memphis, Columbus, Kansas City, Salt Lake City, Houston, Dallas and Seattle. The top five under-supplied markets are New York, San Jose, Los Angeles, San Diego and Baltimore.
Market conditions are determined by econometric model that compares existing supply per person to four demographic variables: population, percent of renters, average household size and average household income
“In the City of Philadelphia, we are seeing conversions of older industrial loft buildings into self-storage facilities and servicing a smaller radius due to the higher density. In the suburbs, we are seeing a proliferation of modern facilities with primarily climate-controlled units.”
www.omegare.com
Philadelphia ranks seventh among markets without sufficient self-storage capacity.
“Analysis by major Metro Markets can be useful for comparison from a national perspective but these metrics should not be relied upon for local area analysis. Factors that affect local self-storage product type include zoning regulations, local demographics, household income and density, among others.The best analytics for this sector are by local trade area. From our Investor Surveys and zip code studies of existing facilities, it is clear the trade area for self-storage is relatively small, generally within a three-mile radius for a typical suburban property.”
The report ranks market conditions overlaid with a scoring model based on occupancy, income, and cap rate data in top Metro markets based on REIS data, along with cap rate data. The result is a ranking of top Metro Markets for self-storage, segmented among top performers and market conditions (under-supply, over-supply, or equilibrium).
Among the markets identified in the report as having too much self-storage supply are: Oklahoma City, Memphis, Columbus, Kansas City, Salt Lake City, Houston, Dallas and Seattle. The top five under-supplied markets are New York, San Jose, Los Angeles, San Diego and Baltimore.
Market conditions are determined by econometric model that compares existing supply per person to four demographic variables: population, percent of renters, average household size and average household income
“In the City of Philadelphia, we are seeing conversions of older industrial loft buildings into self-storage facilities and servicing a smaller radius due to the higher density. In the suburbs, we are seeing a proliferation of modern facilities with primarily climate-controlled units.”
www.omegare.com
Tuesday, August 30, 2016
Stoltz Real Estate Partners Acquires Armada Drive, Greencastle, PA
by Steve Lubetkin, Globest.com
Stoltz Real Estate Partners completed $25.61 million of financing to acquire 1378 Armada Drive, Greencastle, PA. The single-tenant building is currently leased to a subsidiary of Armada, a supply chain solutions company, through January 2034. The five-year fixed rate financing was provided by Short Hills, NJ-based Investors Savings Bank.
The state-of-the-art facility was completed as a build-to-suit for Armada in 2013 as part of the consolidation and modernization of Armada’s Northeast logistics services for McDonald’s. The redistribution facility, McDonald’s largest in the US, is used to deliver food, beverages, equipment, and other restaurant products to distribution centers serving McDonald’s restaurants across the Northeast.
“The class A distribution center is a mission-critical location serving over 14,000 McDonald’s locations along the East Coast. Given the superior attributes of the property and the best-in-class sponsorship, we were able to secure the financing from Investors Savings Bank, which provided the best rate and structure.”
www.omegare.com
Stoltz Real Estate Partners completed $25.61 million of financing to acquire 1378 Armada Drive, Greencastle, PA. The single-tenant building is currently leased to a subsidiary of Armada, a supply chain solutions company, through January 2034. The five-year fixed rate financing was provided by Short Hills, NJ-based Investors Savings Bank.
The state-of-the-art facility was completed as a build-to-suit for Armada in 2013 as part of the consolidation and modernization of Armada’s Northeast logistics services for McDonald’s. The redistribution facility, McDonald’s largest in the US, is used to deliver food, beverages, equipment, and other restaurant products to distribution centers serving McDonald’s restaurants across the Northeast.
“The class A distribution center is a mission-critical location serving over 14,000 McDonald’s locations along the East Coast. Given the superior attributes of the property and the best-in-class sponsorship, we were able to secure the financing from Investors Savings Bank, which provided the best rate and structure.”
www.omegare.com
Monday, August 29, 2016
Biggest Starbucks Warehouse in the World Opening Next Month in Pennsylvania
When all 1.2 million square feet of its newly expanded distribution center in York County, PA become fully operational next month, Starbucks said the Trade Center 83 complex in central Pennsylvania will become its largest distribution center in the world.
The Seattle-based firm said its York Distribution Center expansion will increase capacity by 35% and will help ensure that baristas in more than 3,000 Starbucks stores throughout the Northeastern U.S. and parts of Canada and Europe remain fully stocked of Pumpkin Spice Latte and the rest of its caffeinated elixirs.
Texas-based Hillwood Investment Properties astutely acquired the 95.3-acre tract adjoining the Starbucks bean roasting plant in East Manchester Township for $12 million in 2014 and immediately announced plans to build the 1.2 million-square-foot speculative warehouse, betting that sooner or later Starbucks would need more space.
Earlier this year, Starbucks agreed to take the entire building located at 1605 Bartlett Dr. under a 10-year lease. The expansion will enable Starbucks to move its distribution operations out of the roasting plant, where its roasted more than 3 million pounds of coffee each week since 1995.
The facility features 36-foot clear-height ceilings, a cross dock configuration and dual driveway for multiple tenants and parking for up to 288 cars and 657 trailers.
"As we looked at our long-term growth plans for the business, and the current demands for distribution at scale, we needed to invest in additional capacity," said Jim Wells, vice president of Starbucks Distribution and Supply Chain Operations. "Since opening our roasting facility here in 1995 with just a handful of people, we now have more than 500 full-time partners with plans to hire 300 more over the next three to five years. There's no better location to continue to grow our business and create jobs and economic development."
Gary Frederick, senior vice president and market leader for Hillwood’s Northeast U.S. industrial business, said he expects the success of the large spec project will attract more distribution development in the area.
"Central Pennsylvania’s continued growth creates an ideal area for logistics operators to expand their presence," Frederick said. "With numerous sites under construction, Hillwood sees continued growth and steady demand for industrial space in the market."
www.omegare.com
The Seattle-based firm said its York Distribution Center expansion will increase capacity by 35% and will help ensure that baristas in more than 3,000 Starbucks stores throughout the Northeastern U.S. and parts of Canada and Europe remain fully stocked of Pumpkin Spice Latte and the rest of its caffeinated elixirs.
Texas-based Hillwood Investment Properties astutely acquired the 95.3-acre tract adjoining the Starbucks bean roasting plant in East Manchester Township for $12 million in 2014 and immediately announced plans to build the 1.2 million-square-foot speculative warehouse, betting that sooner or later Starbucks would need more space.
Earlier this year, Starbucks agreed to take the entire building located at 1605 Bartlett Dr. under a 10-year lease. The expansion will enable Starbucks to move its distribution operations out of the roasting plant, where its roasted more than 3 million pounds of coffee each week since 1995.
The facility features 36-foot clear-height ceilings, a cross dock configuration and dual driveway for multiple tenants and parking for up to 288 cars and 657 trailers.
"As we looked at our long-term growth plans for the business, and the current demands for distribution at scale, we needed to invest in additional capacity," said Jim Wells, vice president of Starbucks Distribution and Supply Chain Operations. "Since opening our roasting facility here in 1995 with just a handful of people, we now have more than 500 full-time partners with plans to hire 300 more over the next three to five years. There's no better location to continue to grow our business and create jobs and economic development."
Gary Frederick, senior vice president and market leader for Hillwood’s Northeast U.S. industrial business, said he expects the success of the large spec project will attract more distribution development in the area.
"Central Pennsylvania’s continued growth creates an ideal area for logistics operators to expand their presence," Frederick said. "With numerous sites under construction, Hillwood sees continued growth and steady demand for industrial space in the market."
www.omegare.com
Eight Retail Leases Sign At Lehigh Valley Mall
by Steve Lubetkin, Globest.com
Eight retail leases we signed at the new Hamilton Crossings shopping center on Krocks Road between the Route 222 Bypass and Hamilton Boulevard in Trexlertown, PA, southwest of Allentown.
Totaled deals signed were approximately 115,000 square-feet of retail space. The 560,000 square-foot shopping center is a joint venture between The Goldenberg Group and TCH Development.
The new retailers leasing space are Dick’s Sporting Goods, Nordstrom Rack, Ulta Cosmetics, Chipotle, Verizon Wireless, Univest Bank, Kay Jewelers and Core Life Eatery.
For a few of the retailers, such as Nordstrom Rack, the new location will mark their first presence in the Lehigh Valley. Nordstrom Rack held its grand opening last week. Dick’s Sporting Goods is currently open for business, and the balance of the shopping center is expected to open between now and October.
“The project will bring many new-to-market retailers to the Lehigh Valley and provide a first-class shopping experience for years to come."
The $140-million shopping center is benefiting from significant growth in the immediate trade area and a substantial daytime population.
www.omegare.com
Eight retail leases we signed at the new Hamilton Crossings shopping center on Krocks Road between the Route 222 Bypass and Hamilton Boulevard in Trexlertown, PA, southwest of Allentown.
Totaled deals signed were approximately 115,000 square-feet of retail space. The 560,000 square-foot shopping center is a joint venture between The Goldenberg Group and TCH Development.
The new retailers leasing space are Dick’s Sporting Goods, Nordstrom Rack, Ulta Cosmetics, Chipotle, Verizon Wireless, Univest Bank, Kay Jewelers and Core Life Eatery.
For a few of the retailers, such as Nordstrom Rack, the new location will mark their first presence in the Lehigh Valley. Nordstrom Rack held its grand opening last week. Dick’s Sporting Goods is currently open for business, and the balance of the shopping center is expected to open between now and October.
“The project will bring many new-to-market retailers to the Lehigh Valley and provide a first-class shopping experience for years to come."
The $140-million shopping center is benefiting from significant growth in the immediate trade area and a substantial daytime population.
www.omegare.com
Friday, August 26, 2016
Deal-Tracker: A Roundup Of Sales, Leases And Activities In NJ/PA
by Steve Lubetkin, Globest.com
Here is a roundup of some of the smaller transactions reported in recent weeks in the New Jersey and Philadelphia markets.
Sales
CAMDEN, NJ—CI Architecture, a regional architecture, interior design and land planning firm, has acquired 121 Market Street, Camden, NJ, from RFB Properties, a Republic Bank subsidiary, for $450,000. The buyer plans to fully transform the 9,500 square-foot building interior into a state-of-the-art work workplace
SEA ISLE CITY, NJ— Uncle Mike’s Arcade in Sea Isle City, NJ was successfully sold. The Arcade seller was Michael Dolio . Anthony Shea and Todd DeMott are the new owners.
Leases – New Jersey
SOUTH HACKENSACK, NJ—Lumber Liquidators has renewed 11,000 square feet of industrial/warehouse space at 14 East Wesley Street in South Hackensack, NJ. Located in the Meadowlands submarket, the industrial property is owned and managed by Alfred Sanzari Enterprises of Hackensack, NJ. The transaction was negotiated in-house by Sanzari.
FORT LEE, NJ—PixarBio, a Boston-based biotechnology company specializing in post-operation pain management, is leasing 4,881-square-feet of class A office space at the Fletcher Office Center, 2200 Fletcher Avenue, Fort Lee, NJ.
Leases – Pennsylvania
WEST CHESTER, PA—Optical provider New Vision Family Eye Care has leased 2,300 square feet at Bradford Plaza in West Chester, PA. Located at 700 Downingtown Pike, the 161,000-square-foot grocery-anchored shopping center is exclusively leased and managed by North Plainfield, NJ-based Levin Management.
PHILADELPHIA, PA—Miller’s Ale House has signed a 15-year lease with The Goldenberg Group for 8,860 square feet of space at the Columbus Commons shopping plaza in South Philadelphia. Miller’s Ale House is the latest addition to the 647,266-square-foot regional retail hub serving Central and South Philadelphia and South Jersey. Columbus Commons is located at Columbus Boulevard and Snyder Avenue in Philadelphia and has direct access and visibility from I-95 and the area’s major bridges including Walt Whitman and Ben Franklin. The shopping center is anchored by the city’s first and only IKEA, as well as Raymour & Flanigan, Lowe’s Home Improvement, Best Buy and Pier 1 Imports.
PHILADELPHIA, PA—Archetype Solutions of Trevose is moving to 2124 Race Street and Strassheim Graphic Design & Press Corporation is relocating its downtown offices to 1500 Spring Garden Street under long-term leases. The leases total approximately 7,300 square feet with an aggregate value exceeding $625,000. Biomeme and UK US Tax Services also expanded and relocated its respective downtown offices to 1015 Chestnut Street and Two Penn Center.
Exclusive Agencies
PISCATAWAY, NJ—Keystone Property Group is marketing 30 Knightsbridge Road, a 680,000-square-foot, class A office campus in Piscataway. Thirty Knightsbridge Road features four interconnected buildings on an expansive corporate campus. Since acquiring the property, Keystone has invested several million dollars enhancing the amenity package, which now includes a newly renovated cafeteria, several conference/training rooms, a 200-seat auditorium with its own servery and a state-of–the-art fitness center. Tenants also benefit from robust infrastructure including redundant power with an onsite substation, high-end fiber optic infrastructure, an advanced security system with 24/7 card access and a three-bay covered loading dock with a separate freight elevator.
PARAMUS, NJ—Former occupied by defunct national sporting goods chain Sports Authority 50,000-square-foot, big-box retail space is being marketed for lease. Located at 200 Ikea Drive in Paramus, the prominent site is located at the intersection of routes 4 and 17 – in the heart of the highly sought-after Bergen County retail corridor. Situated directly across from the Garden State Plaza and just moments from the Garden State Parkway, 200 Ikea Drive offers exceptional visibility, high traffic counts and strong demographics. The property’s in-place retailers include IKEA, Bed Bath & Beyond and Christmas Tree Shops.
Capital Markets
MORRISTOWN, NJ—G.S. Wilcox & Co. secured $19.5 million in financing for clients, arranged by Gretchen S. Wilcox, president, and Al Raymond, principal. One loan for $13.5 million with a fixed 2.85 percent interest rate for five years with a 30-year amortization was secured by a 202,148 square foot warehouse building at 1000 Secaucus Road, Secaucus, NJ. The second loan of $6 million was placed on a 100,626 square foot warehouse at 118 Algonquin Parkway, Whippany, NJ. This loan has a three percent interest rate fixed for seven years with a 30-year amortization. Both loans were placed with Kansas City Life Insurance Company.
www.omegare.com
Here is a roundup of some of the smaller transactions reported in recent weeks in the New Jersey and Philadelphia markets.
Sales
CAMDEN, NJ—CI Architecture, a regional architecture, interior design and land planning firm, has acquired 121 Market Street, Camden, NJ, from RFB Properties, a Republic Bank subsidiary, for $450,000. The buyer plans to fully transform the 9,500 square-foot building interior into a state-of-the-art work workplace
SEA ISLE CITY, NJ— Uncle Mike’s Arcade in Sea Isle City, NJ was successfully sold. The Arcade seller was Michael Dolio . Anthony Shea and Todd DeMott are the new owners.
Leases – New Jersey
SOUTH HACKENSACK, NJ—Lumber Liquidators has renewed 11,000 square feet of industrial/warehouse space at 14 East Wesley Street in South Hackensack, NJ. Located in the Meadowlands submarket, the industrial property is owned and managed by Alfred Sanzari Enterprises of Hackensack, NJ. The transaction was negotiated in-house by Sanzari.
FORT LEE, NJ—PixarBio, a Boston-based biotechnology company specializing in post-operation pain management, is leasing 4,881-square-feet of class A office space at the Fletcher Office Center, 2200 Fletcher Avenue, Fort Lee, NJ.
Leases – Pennsylvania
WEST CHESTER, PA—Optical provider New Vision Family Eye Care has leased 2,300 square feet at Bradford Plaza in West Chester, PA. Located at 700 Downingtown Pike, the 161,000-square-foot grocery-anchored shopping center is exclusively leased and managed by North Plainfield, NJ-based Levin Management.
PHILADELPHIA, PA—Miller’s Ale House has signed a 15-year lease with The Goldenberg Group for 8,860 square feet of space at the Columbus Commons shopping plaza in South Philadelphia. Miller’s Ale House is the latest addition to the 647,266-square-foot regional retail hub serving Central and South Philadelphia and South Jersey. Columbus Commons is located at Columbus Boulevard and Snyder Avenue in Philadelphia and has direct access and visibility from I-95 and the area’s major bridges including Walt Whitman and Ben Franklin. The shopping center is anchored by the city’s first and only IKEA, as well as Raymour & Flanigan, Lowe’s Home Improvement, Best Buy and Pier 1 Imports.
PHILADELPHIA, PA—Archetype Solutions of Trevose is moving to 2124 Race Street and Strassheim Graphic Design & Press Corporation is relocating its downtown offices to 1500 Spring Garden Street under long-term leases. The leases total approximately 7,300 square feet with an aggregate value exceeding $625,000. Biomeme and UK US Tax Services also expanded and relocated its respective downtown offices to 1015 Chestnut Street and Two Penn Center.
Exclusive Agencies
PISCATAWAY, NJ—Keystone Property Group is marketing 30 Knightsbridge Road, a 680,000-square-foot, class A office campus in Piscataway. Thirty Knightsbridge Road features four interconnected buildings on an expansive corporate campus. Since acquiring the property, Keystone has invested several million dollars enhancing the amenity package, which now includes a newly renovated cafeteria, several conference/training rooms, a 200-seat auditorium with its own servery and a state-of–the-art fitness center. Tenants also benefit from robust infrastructure including redundant power with an onsite substation, high-end fiber optic infrastructure, an advanced security system with 24/7 card access and a three-bay covered loading dock with a separate freight elevator.
PARAMUS, NJ—Former occupied by defunct national sporting goods chain Sports Authority 50,000-square-foot, big-box retail space is being marketed for lease. Located at 200 Ikea Drive in Paramus, the prominent site is located at the intersection of routes 4 and 17 – in the heart of the highly sought-after Bergen County retail corridor. Situated directly across from the Garden State Plaza and just moments from the Garden State Parkway, 200 Ikea Drive offers exceptional visibility, high traffic counts and strong demographics. The property’s in-place retailers include IKEA, Bed Bath & Beyond and Christmas Tree Shops.
Capital Markets
MORRISTOWN, NJ—G.S. Wilcox & Co. secured $19.5 million in financing for clients, arranged by Gretchen S. Wilcox, president, and Al Raymond, principal. One loan for $13.5 million with a fixed 2.85 percent interest rate for five years with a 30-year amortization was secured by a 202,148 square foot warehouse building at 1000 Secaucus Road, Secaucus, NJ. The second loan of $6 million was placed on a 100,626 square foot warehouse at 118 Algonquin Parkway, Whippany, NJ. This loan has a three percent interest rate fixed for seven years with a 30-year amortization. Both loans were placed with Kansas City Life Insurance Company.
www.omegare.com
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