(Read more on the industrial market.)
DUNMORE, PA-Conshohocken-based Equilibrium Equities Inc. has all but filled a vacancy that loomed when it acquired Key Market Distribution Center in October 2005. It has inked leases with two tenants for an aggregate of 202,619 sf.
J&L Curtainwall LLC, a newly formed company that designs and manufactures pre-glazed curtainwall, is the larger of the two new tenants. It will utilize 148,448 sf for its office headquarters, manufacturing and distribution facilities. Equilibrium negotiated directly with the tenant in this transaction.
Memphis, TN-based Power & Telegraph Supply Co. has signed a lease for 54,171 sf. It is an independent distributor for the telecommunications and cable TV industries worldwide and will use this space as a regional warehouse serving the Northeast. Lee Fein, SVP of the Philadelphia office of Colliers Lanard & Axilbund, negotiated for the tenant, and Equilibrium spoke for itself.
Key Market consists of two buildings at 1026-28 Reeves St., which have an aggregate of 446,000 sf and were constructed in phases over the past 30 years. As GlobeSt.com reported, Equilibrium acquired the property in late 2005 for $7.1 million. Adam Meinstein of Equilibrium tells GlobeSt.com it has since invested $1.8 million in capital improvements. They include upgrades to the electrical and life safety systems, roof, truck court and dock equipment. There are also new entrance canopies, signage and exterior painting.
"It's a class B building in a class A location," he says. "When we bought Key Market, we knew a tenant was vacating 73% of the complex." These agreements bring overall occupancy to 86%. Meinstein attributes the leasing progress to "the location, the fundamentals and quality of the real estate, plus the improvements." Without disclosing the value of the two new leases, he says the asking rent rate is $3.50 per sf.
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