The purchase price was $9.7 million or about $58.31 per sf. Simultaneous with the acquisition, the buildings were leased to a single, unidentified tenant on a triple net basis for an initial term of approximately 20 years. A spokesman for One Liberty tells GlobeSt.com the rental agreement includes rent escalation over the term, and "the lease is guaranteed by the tenant's parent company."
Rental rates for the property are undisclosed. According to year-end 2004 data from the local office of Trammell Crow Co., the average asking rental rate for industrial space in Philadelphia County is $4.84 per sf.
In a statement, Jeffrey Fishman, One Liberty's president and CEO, says, "the purchase of this asset continues the company's desired objective of acquiring quality, improved net leased real property leased on a long-term basis." One Liberty's leases generally provide for contractual rent increases with all operating expenses and most or all other property-related expenses paid by the tenant, according to the statement. According to the spokesman, One Liberty's nearest additional Pennsylvania asset is in Hanover.
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