KUTZTOWN, PA—A warehouse/distribution center here has been sold to a joint venture for $21.3 million, or $55.37 per square foot. Endurance Real Estate Group of Bala Cynwyd, PA, and its joint venture equity partner, Thackeray Partners of Dallas, made the sale just two years after acquiring the property at 9747 Commerce Circle.
The 384,695-square-foot building had been upgraded last spring to suit Hearth and Home Technologies, when it signed a lease for 140,000 square feet.
The property, situated in the core of the Lehigh Valley/I-78/I-81 industrial market, was sold to a joint venture of Woodmont Industrial Properties, based in Fairfield, NJ, and AEW Capital Management of Boston.
A Cushman & Wakefield Capital Markets Group including Paul Torosian, Gary Gabriel, John T. Plower and Gerry Blinebury represented the Endurance/Thackeray partnership in the transaction.
The building, constructed in 2007, features 32-foot ceiling heights, up to 40 loading doors, and an ESFR sprinkler system. At the time the Endurance/Thackery partners acquired it, the property was 55% leased to TEVA, the global pharmaceutical company.
During its holding period, the operating partner, Endurance, secured Hearth and Home as a tenant, agreeing to add a 5,000-square-foot office and ten new loading doors to the property. “Our value enhancement strategy entailed a detail-oriented leasing effort and attention to property management,” said Endurance’s president, Benjamin Cohen.
Once stabilized, the property was positioned for the recent sale, he said. The trade comes on the heels of the partnership’s sale of a 394,600-square-foot facility in Reading, PA, last May. The partnership continues to own and operate approximately 4.1 million square feet of warehouse/distribution
and flex product in Pennsylvania, most of it in the I-81 Corridor.
Endurance Real Estate Group, founded by Cohen and Bill White in 2002, focuses on value-creation opportunities in the Mid- Atlantic region, with a concentration in regional and bulk warehouse/distribution assets.
Since its formation, the company has acquired approximately $270 million worth of properties and disposed of nearly 2.4 million square feet, with a value of $120 million.