Pennsylvania Industrial Portfolio Trades for $215M
The buildings are fully leased to a global e-commerce leader.
Two real estate investment firms have purchased a couple of buildings in Middletown, Pennsylvania for a combined $215.4 million.
Core5 at Middletown is an industrial portfolio of two Class A properties located at 3327 East Harrisburg Pike. The first one was acquired by EQT Exeter Real Estate Income Trust, Inc. for $170.5 million. It features over 1.2 million square feet, 40-foot heights, 224 dock doors, LED lights, an ESFR sprinkler system, and cross-dock loading.
The second building, purchased by MDH Partners, hosts 305,870 square feet and includes single-side loading, 36-foot heights, LED lights, 50 dock doors, and an ESFR sprinkler system.
The industrial properties are nearby to the 775,000-square-foot UPS East region hub. Plus, the Harrisburg International Airport and the FedEx distribution campus on 121 acres are close as well.
The portfolio is fully leased to an undisclosed global e-commerce leader, according to JLL, which arranged the deal. Core5 Industrial Partners was the seller.
“The property represented an exceptional opportunity for both buyers to acquire cash flowing, best-in-class assets at irreplaceable locations,” said JLL’s senior managing director, John Plower, in a statement.
Overall, the industrial market is seeing a healthy amount of demand. Net absorption reached 46.3 million square feet in the second quarter despite vacancy rising to 6.1 percent, the highest in nine years, according to a report from Cushman & Wakefield. But even then, the rate is still below the pre-pandemic decade average of seven percent.
Since 2005, MDH has been involved in $6 billion, or 80 million square feet of real estate. That’s occurred through various methods such as asset management, developments, or acquisitions.