While the company has established a beach-head in Miami in addition to Pennsylvania, New Jersey and Indianapolis, the REIT's on-going repositioning efforts could include sales of assets in Ohio and South Carolina, says chief operating officer Robert F. Savage Jr. Keystone Property Trust does not rule out sales of assets in the three core markets where it generates 80% of its net operating income, Savage says, where buyer interest is high.
The company signed a deal with KIA Motors America Inc. for 211,535 sf of a 265,535-sf building in the Westpark Business Center in Allentown, PA during the fourth quarter. The $10-million project is more typical of Keystone Property Trust's average acquisition of late, which is a 250,000-sf building. However, its new buildings are 600,000 sf, catering to bulk distribution users needing larger and higher spaces, says president and chief executive officer Jeffrey E. Kelter.
Occupancy in the company's 9.7-million-sf Pennsylvania portfolio began 2004 at 91.4% but five million sf of leases worth $19.5 million a year expire in 2004 and 2005. That is one of the biggest challenges facing Keystone Property Trust.
"We're starting 2004 in the strongest position in the company's history," Kelter said in a Wednesday conference call.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.