"We're very happy to buy this property," relays Paradigm CapitalAdvisors principal Steve Allison, whose Boston firm has teamed upwith the Ashforth Co. to form the APCA Property Fund I. Thebuilding has "a fantastic location" off Interstate 95 near the WaltWhitman Bridge in the 500-acre Philadelphia Food DistributionCenter, relays Allison. The full-building lease still has severalyears of term remaining that will provide welcomed cash flow untilthe disposition strategy is realized, Allison explains, citing thatas another reason APCA was "aggressive" in pursuing thecompetitively bid asset. The building was traded via a marketingprocess handled by Steve Marzullo of CB Richard Ellis.

APCA's ardor for 3435-3535 Front St. was enhanced by adetermination that the lease is below market and should offerupside once it rolls, and was also spurred by the firm's belief inthe Greater Philadelphia industrial sector, reports Allison. Thecompany last year acquired a three-building,420,000-sf portfolio in the market and has already managed to fillthe vacant portion of the properties, whose purchase was reportedby GlobeSt.com. "Hopefully, we will be buying some more downthere," says Allison.

As for the exit strategy, Allison says he is encouraged byAPCA's progress buying a portfolio offering the size and stabilityto attract institutional sources. The fund now owns eight buildingsand has another three slated to close over the near term. "We'refeeling pretty good about it," says Allison. But while the heftmight soon be there, Allison stresses APCA will not rush a sale ifmarket conditions deteriorate, having acquired properties thatoffer ongoing yield. On the flip side, the fund has alreadyjettisoned a Boston office building, 263 Summer St., barely a yearafter acquiring the property when a suitor offered $16.1 million,well above the $10.3 million APCA had paid for the eight-story,57,000-sf building.