(Read more on the industrial market.)
FAIRLESS HILLS, PA-Endurance Real Estate Group LLC has sold a four-building industrial portfolio in the Penn Warner Industrial Park to Dallas-based Crow Holdings for $12.4 million, or approximately $51.67 per sf. Endurance bought the 240,000-sf portfolio in partnership with equity provider New York City-based Assurant in April 2003.
According to Benjamin Cohen, president of Endurance, the partnership paid $9 million for the portfolio and since invested $400,000 in upgrades and taking care of "deferred maintenance issues." The buildings, located at 199, 270, 279 and 290 Canal Rd., "were 100% leased with approximately 42% of the rent roll turning over within the first two years," he tells GlobeSt.com.
Endurance stabilized the properties, which were built in the 1970s, and reworked the rent roll. Smart Management renewed its lease for 60,000 sf and extended by another 60,000 sf to fill two of the buildings. Heritage Crystal Clean renewed for 20,000 sf, and Hydrofarm inked a long-term lease, previously reported by GlobeSt.com, for 30,000 sf.
"We knew going in that we needed a patient capital partner," says William White, CEO of Endurance, which is based in Bala Cynwyd. Cohen says the portfolio is now 96% leased and the asking rent rate is approximately $4.50 per sf, triple net.
Jim Sheehan, Jerry Kranzel and Jim Vesey of the Philadelphia office of Cushman & Wakefield represented Endurance in the sale. Crow Holdings, which invests in real estate for the Trammell Crow family, was represented in house.
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