First Industrial Pays $7M for Penn Jersey Building

Steve Marzullo, VP, and Mike Margolis, SVP in the local office of Trammell Crow Co.'s capital markets group, represented the seller. Marzullo says the competitive bid process on this sale is evidence that "investor appetite for quality industrial product, when backed by stable cash flow from financially sound tenancy, remains in high demand." Asked about the 2005 outlook, he adds, "despite current inflationary pressures weighing on the capital markets, we expect the interest rate environment to remain conducive to continued investment sales velocity in Philadelphia."

Penn Jersey Paper distributes disposable packaging, paper products and janitorial supplies for supermarkets, food service operations, hospitality, packer processors and healthcare accounts throughout a six-state area. Terms of the lease are undisclosed. According to a fourth quarter 2004 report from the local office of CB Richard Ellis, the average minimum asking rental rate for industrial space in Philadelphia Country is $3.90 per sf.