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OAKS, PA-An affiliate of Boston-based Colony Realty Partners has acquired the Valley Forge Distribution Center, an 823,731-sf warehouse and distribution complex, for $34 million or just north of $41 per sf. The complex consists of the 811,984-sf former Fleming Foods' distribution center and adjacent 11,747-sf maintenance building.
The complex at 125 Green Tree Rd. is 97% leased. One tenant, Tyco Healthcare Group, occupies 77% of the asset under a long-term lease. Other tenants are Herman Miller, J&J Services, Virtual Storage and JJ Haines.
The seller, BPG Properties Ltd., which is the real estate management arm of Philadelphia-based Berwind Property Group, acquired the vacant complex about four years ago prior to Fleming's filing for Chapter 11 bankruptcy protection. According to published reports, BPG paid slightly more than $18 million for the 70-acre complex.
The distribution complex was built between 1977 and 1988. BPG renovated and repositioned it in 2003, according to Michael Hines, executive vice president in the Philadelphia office of CB Richard Ellis. The CBRE team included Michael Blunt, Douglas Joseph, Robert Fahey and Lizann McGowan, representing both seller and buyer.
"BPG is in the business of repositioning assets for sale and this is a prime example of that strategy," Hines tells GlobeSt.com. The quoted rents for the warehouse are "in the mid-$3s per sf to the high $4s per sf," he says.
Hines says the acquisition is CRP Investments' first acquisition in the Delaware Valley, but not its last. "It is absolutely seeking additional properties here," he says.
Meanwhile, BPG has held onto an adjacent development. It has built a 57,000-sf flex facility and plans to add a 28,000-sf office building and 11,000-sf, build-to-suit daycare center to the site.
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