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MECHANICSBURG, PA-Denver-based Dividend Capital Total Realty Trust Inc. has acquired the 378,000-sf warehouse and distribution facility at 571 Independence Ave. in the Upper Allen Business Center. The sale price was not disclosed.
On condition of anonymity a Central Pennsylvania broker tells GlobeSt.com that the selling price was probably in a range of between $28 per sf and $35 per sf, which would put the total tag above $10 million. The seller is New York City-based Rreef.
Michael Hines, executive vice president, and Michael Blunt and Joseph McDermott of the area office of CB Richard Ellis were the lead brokers, representing both sides in the transaction, along with Robert Fahey, Lizann McGowan and Douglas Joseph of CBRE's investment property group. The building is currently 100% leased to Kane Warehousing Inc., a third party logistics supplier and affiliate of Scranton-based Kane is Able Inc.
Hines tells GlobeSt.com that less than two years remain on the Kane lease. He says the current rent rate for similar buildings in this area is about $4 per sf, triple net.
The building was completed approximately six years ago. It has a 28-foot clear ceiling height, 50 dock doors, 154,000 sf of conditioned space and 68 trailer stalls. The Upper Allen park, Hines says, "is one of the most sought after business parks in Central Pennsylvania."
It is unclear if this property was part of a larger portfolio purchase by Dividend that included more than one million sf of space and cost $53 million. Calls to Dividend were not returned by deadline. The REIT owns 14 properties aggregating approximately 3.2 million sf, acquired, the company reports, at a cost of about $255 million.
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