MIDDLETOWN, PA—After transforming Capital Logistics Center into one of the most modern logistic and industrial parks in Pennsylvania, Woodmont Industrial Partners and AEW Capital Management have sold the asset to Dermody Properties, which develops and operates industrial properties across the country. Citing Dauphin County, PA, property records, the central Pennsylvania news website PennLive.com reported the sale price was approximately $76.1 million.
Woodmont and AEW finalized the sale following an extensive capital improvement program of the six-building, 1.55-million-square-foot complex in Middletown, PA. The partnership constructed the new industrial facilities to replace the antiquated structures that previously occupied both 200 and 300 Capital Lane. Cushman & Wakefield's IAG Northeast Region leads Gerry Blinebury, executive director, in Harrisburg, and Gary Gabriel, executive vice president, in East Rutherford, represented the seller. The buyer was represented in-house.
“Dermody Properties is very pleased to acquire this well-located five-building business park in Central Pennsylvania,” says Eugene Preston, Dermody's partner for its Eastern Region. ”The property fits well in our company's portfolio from both a tenant roster and geographical diversification perspective. Dermody Properties is growing the portfolio with a mix of building acquisitions and development projects.”
“This transaction represents a multitude of asset classes including stabilized core product, vacant value-add product and additional land development,” says Cushman & Wakefield's Blinebury. “In addition to the highly desirable location, extensive renovations completed by Woodmont/AEW leave the assets well-positioned for the user community, as evidenced by a major food distributor's recent decision to occupy 400,000 square feet of class A space.”
In 2016, Woodmont and AEW completed nearly 500,000 square feet of positive net absorption including a full-building lease with a multinational food manufacturing company at 200 Capital Lane. The 400,060-square-foot, state-of-the-art facility achieved LEED Silver certification shortly after being constructed in 2014. Additionally, WIP and AEW Capital signed a 77,987-square-foot lease with full-service freight transportation provider Estes Express Lines at 400 Capital Lane, bringing the building to full occupancy.
“Our decision to heavily invest in the renovation of Capital Logistics Center over the past several years was validated with this sale,” says Eric Witmondt, principal of Woodmont Industrial Partners. “We were able to position this property to coincide with a strong demand in the market and attract quality tenants, which ultimately led to the right timing for this sale. We look forward to continuing our successful relationship with AEW and plan to remain active in the Harrisburg market.”
Situated on more than 100 acres in Central Pennsylvania, at the heart of the I-81 Distribution Corridor, Capital Logistics Center fronts the Pennsylvania Turnpike and is less than a mile away from Harrisburg International Airport. The property is also near local FedEx and UPS facilities, as well as routes I-283, I-83 and 322.
“As demand for class A industrial product in the Northeast continues to grow, so too does our portfolio,” Witmondt says. “In 2017, we will continue to capitalize on opportunities to acquire properties that are ripe for revitalization in key submarkets throughout the region.”
UPDATE, 7/6/2017, 4:32 p.m.: This story has been updated with a comment from Dermody Properties.
UPDATE, 7/6/2017, 11:01 a.m.: This story has been updated with additional information about Cushman & Wakefield's role in brokering the transaction, and with a comment from Cushman & Wakefield's team leader on the deal.
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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].
