HARRISBURG, PA. — Dallas-based investment firm Rosewood Property Co. has acquired a 342-unit self-storage facility at 5700 Linglestown Road in Harrisburg. The property, which spans 35,430 net rentable square feet of primarily climate-controlled space, was converted from a warehouse into a self-storage facility in 2019. The seller and sales price were not disclosed.
JESSUP, PA. — A joint venture between Dallas-based Trammell Crow Co. and Diamond Realty Investments has sold Valley View Trade Center, a roughly 1 million-square-foot distribution center in Jessup, a northern suburb of Scranton. Built on a speculative basis in 2020, Valley View Trade Center features a clear height of 40 feet, truck court depths of 190 feet, an ESFR sprinkler system, 311 trailer parking spots, 277 car parking spots and 159 dock positions. Michael Hines, Brian Fiumara, Brad Ruppel, Joe Hill and Lauren Dawicki of CBRE represented the joint venture in its disposition of the property. Los Angeles-based Preylock Holdings purchased the asset, which was fully leased at the time of sale, for an undisclosed price.
MCKEESPORT, PA. — Phoenix Investors, a Milwaukee-based investment firm, has purchased a 600,000-square-foot industrial property in McKeesport, located southeast of Pittsburgh in Allegheny County. The property, which was built in 1963 and subsequently renovated in 2005 and 2018, is located on a 36-acre site approximately 35 miles southeast of Pittsburgh International Airport with proximity to Interstates 70 and 76. Ned Shekels of Pennsylvania Commercial Real Estate Inc. brokered the deal, the seller in which was not disclosed. Phoenix Investors expects to immediately commence upgrades to the facility to accommodate new tenant occupancy and market the available space for lease.
PITTSBURGH — New Jersey-based Tryko Partners will develop Cedarwood Homes, an age-restricted affordable housing project that will be located at the site of the former Fairywood School in Pittsburgh. The majority (39) of the units will be reserved for renters earning 60 percent or less of the area median income. The Pennsylvania Housing Finance Agency has awarded a 9 percent Low-Income Housing Tax Credit to fund the project. Completion is slated for late 2023.
YORK, PA. — A joint venture between ASB Real Estate Investments and Endurance Real Estate Group has acquired York Business Center, a 1.5 million-square-foot industrial facility located in the central part of the state, for approximately $91 million. The three-building property, which was 94 percent leased at the time of sale, sits on a 119-acre site near the intersection of Interstate 83 and State Route 30. Tenants include Harley-Davidson, which operates a preassembly facility that supports the nearby manufacturing plant, as well as printing company LSC Communications and nonprofit healthcare provider WellSpan. Building features include clear heights of up to 32 feet and parking for roughly 1,600 cars and 400 trailers. The seller was not disclosed.
PITTSBURGH — The Allegheny County Airport Authority has broken ground on the Terminal Modernization Program, a $1.4 billion expansion project that will add a new 700,000-square-foot terminal at Pittsburgh International Airport. The new terminal will be designed to improve the passenger experience by consolidating ticketing, security checkpoints and baggage claim. In addition, the project will add a multimodal complex that includes a new 3,300-space parking garage, rental car facilities and entrance roadways. The design team behind the project includes Gensler, HDR and Luis Vidal + Architects. The new terminal is expected to generate approximately $2.5 billion in economic activity and create more than 14,000 total direct and indirect jobs. The new terminal is scheduled to open in 2025.
By Richard Gorodesky, SIOR, senior managing director, Colliers International; and Adam Gorodesky, associate, Colliers International Commercial real estate is historically a cyclical business. There is a fairly predictable pattern of oversupply, recession, recovery and finally expansion before starting all over again. While the cycle isn’t always this cleanly defined, it generally follows this pattern, and has done so for decades. While this formula can be very useful for understanding the cycles and what occurs during them, it lacks one key ingredient: timing. There’s no way to accurately predict when one stage is ending or how long each phase will last. On a basic level, like in all markets, the commercial real estate market cycle responds to the balance, imbalance and rebalancing of supply and demand. The factors that influence the market and determine the length of each cycle are and will continue to be moving targets. Demand Overview While e-commerce represents about 18 percent of retail sales today, and it is widely believed in commercial real estate circles that that number could grow to 30 percent by 2025. Amazon, online retailers and other e-commerce companies have not only fueled demand for last-mile distribution facilities, which are necessary to reach as …
CHERRY HILL, N.J. — Locally based investment firm Velocity Ventures Partners has purchased Rockhill Industrial Center, a 97,000-square-foot industrial flex property in the Philadelphia suburb of Cherry Hill. The eight-building facility, whose suites range in size from 2,000 to 20,000 square feet, was fully leased at the time of sale. Chris Henderson of JLL represented Velocity Ventures in the transaction. The seller and sales price were not disclosed.
NEW YORK CITY — Cushman & Wakefield has arranged the sale of the Interstate Industrial Portfolio, a collection of 15 buildings totaling approximately 2.5 million square feet located in various markets throughout the Northeast. Those markets include Harrisburg, Pennsylvania, and Columbus, Ohio, as well as the Upstate New York cities of Syracuse, Rochester and Albany. Cushman & Wakefield’s David Bernhaut, Kyle Schmidt, Ryan Larkin and Seth Zuidema represented the seller, Heritage Capital Group, in the transaction. Gideon Gil, Alex Lapidus and Meredith Donovan, also with Cushman & Wakefield, arranged $114.2 million in acquisition financing on behalf of the undisclosed buyer. An affiliate of LoanCore Capital provided the loan. The portfolio was 97 percent leased at the time of sale.
PHILADELPHIA — CBRE has negotiated the $33.5 million sale of a 454,456-square-foot industrial property located along the Interstate 95 corridor in Philadelphia. The property was originally built in 1960 on a 26.4-acre site and recently underwent a $3.7 million capital improvement program. Building features include clear heights of 18 to 24 feet, parking for 189 cars and 46 trailers and 16,800 square feet of office space. Michael Hines, Brian Fiumara, Brad Ruppel, Joe Hill, Lauren Dawicki, Stephen Marzullo and Adam Silverman of CBRE represented the seller, Ivy Realty, in the transaction. CBRE’s Steven Doherty and Nick Harris arranged acquisition financing on behalf of the buyer, a partnership between two New York-based firms, Ajax Advisors and Brickman Associates. The property was fully leased at the time of sale.