Cushman & Wakefield Inks Sale of Lehigh Valley Industrial Asset
26 Dec, 2012, Kutztown, PA
A 385,000-square-foot industrial property located in Kutztown, Pa., has traded hands in a $21.3 million sale orchestrated by Cushman & Wakefield, Inc.'s Capital Markets Group. A joint venture involving Woodmont Industrial Partners and AEW Capital Management purchased 9747 Commerce Circle from a joint venture involving Endurance Real Estate Group and Thackeray Partners. AEW acquired the property on behalf of AEW Partners VI, L.P., the sixth in the firm's series of opportunistic real estate funds.
Built in 2007 and located on nearly 26 acres, this Class A distribution center is fully leased to Teva Pharmaceutical USA, Inc, Hearth & Home Technologies and PALRAM Industries Ltd. The property is located in Arcadia West Industrial Park, a 250-acre, master-planned campus located one-half mile from I-78 in the heart of the I-81 & I-78 distribution corridor. This super-regional industrial market contains more than 215 million square feet of warehouse/distribution space throughout eastern Pennsylvania.
"Given its consistent growth, highway infrastructure and historical stability, the Lehigh Valley continues to be viewed as a core industrial market for investors," noted Cushman & Wakefield's Paul Torosian, who headed the assignment with John Plower of the Philadelphia, PA office and Gary Gabriel of Cushman & Wakefield's Metropolitan Area Capital Markets Group. "As such, many choose to hold their assets, making investment opportunities scarce. The chance to acquire a fully leased, new-generation building drew significant interest."
Torosian added that the modern, high-quality construction at 9747 Commerce Circle added to its investment appeal. The property includes an ESFR sprinkler system, 32' minimum clear height, T-5 lighting, 50' x 50' column spacing and other features. The seller had made a significant investment in upgrades over the past two years.
"This is a terrific asset in a terrific market that continues to perform well," Torosian noted. "Rental rates in the Lehigh Valley are climbing, vacancy has decreased, and speculative development is underway at several industrial parks. Credit tenants continue to flock to the region, with more than a dozen major leases signed over the past 24 months - most recently including commitments by Crayola, Ocean Spray, Dollar General and PetSmart."
Plower and Torosian are based in Cushman & Wakefield's Philadelphia office. Gabriel is based at the Metropolitan Area Capital Markets Group's main office in East Rutherford, N.J. The team specializes exclusively in investment sales of office, industrial, multifamily and retail properties throughout New Jersey, New York, Fairfield County, Conn., and Pennsylvania. It has completed more than $16 billion worth of transactions since 2000.