(Read more on the industrial market.)
FOLCROFT, PA-CSG Partners, an affiliate of the White Marsh, MD-based Creaney and Smith Group, has acquired the 125,952-sf food processing and distribution facility at 519 Kaiser Dr. from Omaha, NE-based food processor, ConAgra Corp. The building is located on approximately 10 acres in the Folcroft East-West Business Park.
CSG has obtained a nearly $10.8-million acquisition and construction loan to finance the buy, renovate the recently vacated existing building and construct an adjacent 44,300-sf second building. The lender is Chicago-based Wrightwood Capital, and Crae Ramsey, senior director of investments in Wrightwood's Washington DC office, handled the transaction, which was sourced through Martin Kamm and Jim Gladden in the DC office of Jones Lang LaSalle.
It is has a 36-month term. Without disclosing the interest rate, Ramsey says it is a floating rate above Libor. He tells GlobeSt.com the loan-to-cost ratio is 80%, which would put the value of the buy, renovation and expansion at close to $13.5 million. CSG owns a 44,000-sf building on an adjacent site in the park, and Ramsey says, “that is well-leased, so the buyer knew the value of its investment.” CSG is already in negations with a prospective tenant, he adds.
The existing building was completed in 1971. CSG will convert it from food processing to a general warehouse facility. The entire project is expected to reach completion in spring 2008. Then each of the two buildings will have four individual tenant suites, ranging from 21,000 sf to 40,000 sf in the renovated building and beginning at 11,075 sf in the new one.
The Folcroft industrial park offers easy access to the Philadelphia International Airport and Interstates 95, 476 and 76. “Given the area's strong fundamentals and the need for new industrial product, the borrower is able to capitalize on repositioning an existing large building while creating additional space for smaller users,” Ramsey says.
Joe Gallagher of the Philadelphia-based Flynn Co. is handling the leasing. He tells GlobeSt.com the asking rate for the renovated building is $6.50 per sf, triple net. The asking rate for the new one is $8 per sf. According to a mid-year report from the Philadelphia office of Colliers Lanard & Axilbund, the average asking rent rate for industrial space in Delaware County is bested only among the Philadelphia suburbs by Chester County, where the rate now averages $7.58 per sf.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
