Dave Beal, who represented West Hartford, CT-based Wiremold in the transaction, says a statement on the closing released yesterday by Cushman & Wakefield's Philadelphia office is premature. While Beal acknowledges that the triple net-lease deal has "closed in the sense that all the legal documents have been signed, there are still tenant improvements that have to be done to the space," he tells GlobeSt.com. "The tenants have not moved in because we have these tenant issues to deal with."
Crossroads general partner Adam Meinstein insists Beal's remarks speak to the spirit of the deal rather than its legality and says Beal's statements refer to a 5,000-sf office space build out that has to be finished before Wiremold can occupy the space in June. "The deal is fully executed and fully binding," Meinstein tells GlobeSt.com "[The transaction] is not done in a philosophical sense because the tenant has not moved in and the build out has not been done."
Meinstein adds that Wiremold signed off on the press release and points out that Wiremold vice president of sales Scott Bartosch is listed on the release as a contact. Bartosch is traveling and was unavailable for comment. Steve Cooper of C&W, the exclusive leasing agent for Crossroads, dismissed Beal's comments.
Asking rents at the 500,000-sf industrial campus are $4.25 per sf for a triple-net lease and Meinstein confirms that the Wiremold deal is "in that ballpark." Crossroads, which is located in the Harrisburg suburb of Middlesex Township, is a joint venture between Hanover, PA-based Conewago Contractors and Equilibrium Equities of New York, where Meinstein serves as president. The complex has frontage on both Interstate 81 and the Pennsylvania Turnpike.
Wiremold designs, manufactures and sells electrical products--primarily wire and cable management, power and data quality products and data/communications connectivity systems. The company plans to use the Crossroads space as a regional distribution center, relocating current operations from Memphis. Wiremold joins Genco Distribution Systems at Crossroads. Genco recently completed a lease for 160,000 sf at the property.
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