CHAMBERSBURG, PA-JP Morgan buys the 862,450-sf warehouse/distribution center at 1475 Nitterhouse Dr. for just under $53.2 million, or $61.63 per sf. Seller Nitterhouse LLP, a partnership that consists of several funds, acquired the building when Kmart was in bankruptcy.

The property is fully leased to Kmart of Pennsylvania on a triple-net basis until Aug. 31, 2016 and the lease is guaranteed by Kmart Corp. The facility, which was built in 2001, is located along the Interstate 81 distribution corridor.

"This deal broke the $60-per-sf mark for distribution centers in this market," James P. Vesey, senior director in the Philadelphia office of Cushman & Wakefield, tells GlobeSt.com. "Previously, the highest trade for this type of facility in this area was in the low $50s per sf." Vesey, James Sheehan, Jerome Kranzel, Stephen Cooper and Jeffrey Williams of C&W represented the seller and were the only brokers. Among the partners in Nitterhouse LLP, Vesey says, are New York City-based Angelo Gordon and Blue Vista, which is based in Chicago.

"The sellers were able to capitalize on the change in Kmart's credit outlook following its acquisition of Sears, which took it out of bankruptcy and made it a part of a very credit-worthy conglomerate," he says. He declined to disclose what the Nitterhouse partnership paid for the property, but says, "they did well," in the sale to JP Morgan, which acquired it as an investment asset.