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Keystone Buys in Harrisburg, Sells Shares to Fill its Purse

WEST CONSHOHOCKEN, PA-With a one-year loan, the REIT pays $21.5 million for a 677,548-sf distribution center in Harrisburg. Meanwhile, it completes a public offering to raise $78 million to fund future acquisitions.

By Marita Thomas | Updated on November 04, 2003

WEST CONSHOHOCKEN, PA-Locally based Keystone Property Trust continues its Pennsylvania buying spree with the purchase of a 677,548-sf distribution center in Harrisburg for $21.5 million. The acquisition is funded with a one-year, $25-million, senior-secured loan. Meanwhile, the REIT also completes a public offering of four million shares of common stock that will infuse its coffers with approximately $78 million to fund more acquisitions.

Toronto-based Royal Bank of Canada and RBC Capital Markets arranged the loan, which has a variable interest rate priced at 1.875% above Libor. Proceeds not devoted to the Harrisburg acquisition will help fund Keystone’s earlier JV acquisitions.

The Harrisburg property is at 3500 Industrial Rd., which abuts the Norfolk Southern Intermodal Yard and is adjacent to I-81 and Route 22. It is 98% leased to a tenant roster than includes SuperValue, Exel and PJAX. “With this acquisition, Keystone owns more than 10.5 million sf of bulk distribution assets in Pennsylvania,” according to A. Donald Chase Jr., SVP.

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