The price tag is just shy of $7.7 million, or approximately $47 per sf. This is Needham, MA-based Equity Industrial's second Pennsylvania acquisition in less than a week. Days ago it acquired the 1.5-million-sf York Business Center in York, as GlobeSt.com reported.
Michael Hines, EVP; Michael Blunt, SVP, and associate John Pasquarella of the investment property institutional group of the Philadelphia regional office of CB Richard Ellis, and SVP Bill Wolf in CBRE's Allentown office negotiated the deal. The tenant, which operates as Cherrydale Farms, makes confections and has been in business for 100 years, according to Hines. He tells GlobeSt.com it has "a significant capital investment in the property totaling more than $22 million in plant and equipment.
"This facility works very efficiently for them from a manufacturing, warehousing, distribution and labor standpoint. We expect them to be in this facility for many years to come," he says, noting that the company is experiencing double-digit sales growth.
The facility was built in 1981 and expanded by 46,700 sf in 2004. It contains Cherrydale's executive offices of 15,000 sf along with confections processing, packaging and distribution operations. The buy provides the new owner with a long-term, triple-net leased, quality industrial building significantly below replacement cost within the highly desirable Lehigh Valley, notes Hines.
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