PITTSTOWN, HAZLETON, and JESSUP, PA—KBS Real Estate Investment Trust II, a non-traded real estate investment trust based in Newport Beach, CA, has sold I-81 Industrial Portfolio, a 1,644,480 square-foot portfolio of four industrial warehouse and distribution buildings located within the I-78 / I-81 Corridor Market in eastern Pennsylvania. Chambers Street Properties, a Princeton, NJ REIT focused on acquiring, owning and operating net leased industrial and office properties, is the buyer.
One of the four buildings is a 140,800 square-foot high-bay industrial building, and the other three are bulk industrial and distribution buildings.
“This was an excellent opportunity for Chambers Street to acquire a well-located, critical use, industrial portfolio with quality tenants at attractive pricing. This purchase brings our total 2014 acquisitions to over $200 million and remains consistent with our strategy of purchasing U.S. industrial assets in strong markets,” says Philip L. Kianka, executive vice president and chief operating officer of Chambers Street.
The portfolio is 100% net leased with annual rental increases ranging from 2.0% to 2.5% and has a weighted average remaining lease term of 3.6 years. Over 90% of current annualized base rent is derived from investment grade rated tenants.
“The buildings in this portfolio were constructed in 2007 and 2008, offering high-quality, modern space for large corporations and third-party logistics providers,” says Shannon W. Hill, KBS senior vice president. “We believe that the quality of this portfolio and history of low vacancy rates made it an attractive investment for the buyer.”
“The I-81 / I-78 corridor has become highly sought-after by investors,” says Michael Hines from CBRE, who represented KBS in the sale along with his partners Brian Fiumara and Brad Ruppel. “This market has a low vacancy rate (8.4% for modern bulk) and tremendous leasing activity averaging 21.7MSF from 2011 to 2013, including a 41% year-over-year increase in 2013."
The I-81 Corridor benefits from connections to major East-West highways granting access to the large population centers of New York City, Boston, Pittsburg, Philadelphia, Washington, D.C., and Baltimore, and it is accessible to seaports along the East Coast.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
