KUTZTOWN, PA– A fully-leased 385,000-square-foot industrial property here in the Lehigh Valley has traded hands in a $21.3 million sale orchestrated by Cushman & Wakefield's Capital Markets Group.
A joint venture by Woodmont Industrial Partners and AEW Capital Management purchased 9747 Commerce Circle from a joint venture involving Endurance Real Estate Group and Thackeray Partners. AEW acquired the property through its AEW Partners VI, the sixth real estate fund in a series.
“Given its consistent growth, highway infrastructure and historical stability, the Lehigh Valley continues to be viewed as a core industrial market for investors,” said C & W's Paul Torosian. “The chance to acquire a fully leased, new-generation building drew significant interest.”
The distribution center was built in 2007 on nearly 26 acres in Arcadia West Industrial Park, which is located in the heart of the I-81 and I-78 distribution corridor of eastern Pennsylvania. It is fully leased to Teva Pharmaceutical USA, Hearth & Home Technologies and PALRAM Industries Ltd.
Torosian, who headed the assignment with John Plower of C & W's Philadelphia office and Gary Gabriel of the Metropolitan Area Capital Markets Group, said opportunities to acquire such properties is scarce.
Torosian added that the modern, high-quality construction at 9747 Commerce Circle added to its investment appeal. The property has an ESFR sprinkler system, 32' minimum clear height ceilings, T-5 lighting and 50' x 50' column spacing.
The seller had made a significant investment in upgrades over the past two years, Torosian said.
He said rental rates in the Lehigh Valley are climbing and vacancy has decreased. Speculative development is underway at several industrial parks. Torosian said tenants are flocking to the region, with more than a dozen major leases signed over the past 24 months – including commitments by Crayola, Ocean Spray, Dollar General and PetSmart.
Plower and Torosian are based in Cushman & Wakefield's Philadelphia office. Gabriel is based at the Metropolitan Area Capital Markets Group's main office in East Rutherford, N.J.
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