MONTGOMERYVILLE, PA-A limited partnership identified as Montgomeryville Real Estate Associates has purchased a parcel of just over 28.7 acres containing two warehouse/light industrial buildings for $13.2 million with plans to add a third warehouse facility. The existing buildings are at 1050 Bethlehem Pike, which is Rte. 309, and 1350 Welsh Rd., which is Rte. 63.
Philadelphia-based Corvest Realty Management Inc. will serve as property and construction manager for the new owner. It is a company affiliated with Michael Corenzwit, president and CEO of Corvest Realty Group Inc., also based in Philadelphia, and Corenzwit is a member of the acquiring partnership.
The sellers are Marc, Jeffrey, Fred and David Hoffman. Michael Hines and Michael Blunt of the area office of CB Richard Ellis were the sole brokers. Sovereign Bank provided acquisition and construction financing in a loan arranged by Robert Jacoby, a principal at Devon iCap. The loan amount is undisclosed.
The Bethlehem Pike property was completed in 1968, and the other building was completed in 1973. They contain an aggregate of 183,593 sf of warehouse/light industrial space and 45,587 sf of office space and are 98% leased, Corenzwit tells GlobeSt.com. Among the major tenants are Verizon, Dealer Tire, Blue Mountain Recycling, Lansdale Warehouse and Label Rite.
Plans for a new 180,000-sf warehouse facility on an 11.3-acre development parcel are being prepared for submission for all required approvals, Corenzwit says. He expects to deliver the new building for occupancy in spring or summer 2006. "We are currently in discussion with a few prospective tenants but anticipate a more concerted marketing effort after obtaining the approvals and commencement of site improvements," he says.
In addition to the new construction, the owners plan to invest several million dollars for extensive renovation of the existing buildings, according to Corenzwit. He estimates the total investment, including acquisition, renovation and construction, to be about $20 million.
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