The property itself is a warehousing and distribution center, located at 1275 Valley Brook Ave., that is currently 60% leased to multiple tenants. The acquisition is part of the West Conshohocken, PA-based Keystone Property Trust's $300 million partnership with CalEast. The latter organization is made up of LaSalle Investment Management and Calpers. The identity of the seller and other details of the latest transaction were not released.
"This transaction is representative of the kind of value-added one-off acquisitions that we target for our venture with CalEast," according to John B. Begier, executive vice president and chief investment officer for Keystone. "The building was acquired at what we feel is an attractive price per sf, and it provides us with an opportunity to both increase income and create value.
"This acquisition also increases our penetration in the Meadowlands submarket, which is a target market for our company," Begier continues. "From an investment perspective, the Meadowlands submarket benefits from a shortage of land for new development and the stable demand for space that is being generated by its close proximity to New York City."
With the acquisition, Keystone, a REIT, has a portfolio that now totals more than 120 industrial and office properties aggregating in excess of 22 million sf. Some 20 million sf of that involves "big box" distribution facilities, the majority of it in the company's core markets of New Jersey, Pennsylvania and Central Indiana.
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