(Read more on the industrial market.)
YORK, PA-Newport Beach, CA-based Hager Pacific Properties has acquired the 112,500-sf industrial building at 3380 Susquehanna Trail from Chicago-based First Industrial Realty Trust. The price was approximately $5 million, or about $44.44 per sf.
The building was completed in 1992 and is currently fully leased to Starbucks Corp. “Starbucks has been there for about five years, and, on the distribution side, it's their policy to only sign relatively short-term leases,” says Robert Neal, a Hager managing partner. He tells GlobeSt.com the building was originally designed for two tenants and could be again demised for two occupants. The market rate rent, he says, is now $4.05 per sf net.
The building is located on 10.6 acres with immediate access to I-83. John Van Buskirk of Harrisburg-based NAI/Commercial Industrial Realty Co. represented both the buyer and seller in the sales transaction.
This is HPP's 13th industrial acquisition in the Greater Harrisburg and York markets. “It takes our Central Pennsylvania portfolio to 2.3 million sf in 13 buildings,” Neal says. “This market has a lot of the characteristics we like very much, and it also has a high barrier to entry. There's not much available land.
“We consider it to be a smaller, but very viable proxy to the Inland Empire in California,” he continues. “That grew the same way, as an off-price alternative to higher-priced locations. One hundred million people are within an eight-hour truck hall of this location, which is even better than California,” he notes. “This is a class A facility at rates about 45% less than in the very expensive coastal markets of New Jersey and New York. That gives it a very compelling argument.”
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