(To read more on the industrial market, click here.)
MECHANICSBURG, PA-Atlanta-based Industrial Development International has acquired a 400,000-sf warehouse/distribution facility for $18.4 million, or $46 per sf. Locally based Triple Crown Corp. completed the building in 2006, and IDI bought it vacant.
The class A building is located at 100 Louis Pkwy. in Golden Triangle Industrial Park, which is midway between Harrisburg and Carlisle and within one mile of Interstate 81. The I-81 corridor has seen rapid warehouse development over the past few years, and plans are underway to widen sections of the highway.
According to a fourth-quarter report from the Philadelphia office of Cushman & Wakefield, the I-81/I-78 distribution corridor now ranks among the top five most active distribution markets in the country. The C&W report says it experienced more than 15 million sf of direct positive absorption and 17 million sf of new construction completions over the past three years.
John Van Buskirk and Jack Shepley of the industrial properties group of Harrisburg-based NAI/CIR represented the seller, High Bay LP, a Triple Crown special purpose entity, in the transaction. IDI was represented in house through its Philadelphia regional office, which is headed by Frank Petkunas, VP and regional development officer. A call to Petkunas was not returned by deadline.
Van Buskirk tells GlobeSt.com, "face rates for new warehouse space in the Harrisburg market is running from $4.10 per sf to $4.35 per sf, triple net." According to the C&W report, the average rental rate growth in this submarket rose 8.7% in 2006.
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