(Read more on the industrial market.)
DENVER, PA-Lippert Components Inc. has sold its 83,400-sf manufacturing facility to MBC Development LLC, a real estate company affiliated with Schuylkill Haven-based Miller Bros. Construction Inc., and leased back half of it. The property is located on 34.8 acres at 1658 Dry Tavern Rd.
The selling price was just north of $2.7 million, according to Vincent Ranalli in the Wayne office of CB Richard Ellis. He and Joe McDermott, SVP in the same office, played several roles in completing this transaction within two months. They represented the seller, procured the buyer and also found a tenant.
The property contains a 72,000-sf main manufacturing plant, 7,800-sf stand-alone paint booths and 3,600 sf of finished office space. It is clear-span construction with 17-foot to 22-foot clear ceiling heights and 22 oversize loading doors. It was constructed in 2000.
Lippert is a Goshen, IN-based steel fabrication company that serves the manufactured housing and recreational vehicle industries. Its space requirements here had changed, Ranalli says, "and the company concluded that it only needed half of the building. It's an exceptional crane-served facility," he says, adding, "there are very few buildings that can accommodate tenants with significant outside storage requirements."
The building's "multi-tenant capability, excellent access to Rte. 222 and I-76, ample outdoor storage and the potential to develop the remainder of the parcel," were attractive to MBC, he says. Ranalli and McDermott represented MBC in negotiations with the Reading-based Reading Group for the half of the building Lippert is vacating, immediately taking occupancy to 100%. Ranalli tells GlobeSt.com the rent rate for comparable properties here is $4 per sf, triple net.
Miller Bros. usually represents itself in negotiations, but, in a statement, James Miller, director of development, says it chose CBRE because of its "area experience and relationships. (McDermott and Ranalli) were able to find a tenant for the other half of the building even before we closed the deal. They got the job done faster than we could have possibly hoped for."
Regarding the land, Ranalli says, "it is zoned light industrial." While there are no immediate plans for expansion, "we're pursuing the potential for build-to-suit sale or lease opportunities and are in the process of determining the amount of capacity available for expansion."
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