PHILADELPHIA-Capital Lease Funding Inc. has acquired the approximately one-million-sf warehouse distribution center at 2760 Red Lion Rd. to for just over $90.1 million, or about $89 per sf. Seller Malvern-based Liberty Property Trust, which developed the property as a build-to-suit for the TJX Cos. in 2001, obtained a return of more than $41 million. The sale is "consistent with Liberty's active capital recycling program," says Bill Hankowsky, Liberty's CEO, in a statement.
The building is fully leased to a TJX affiliate under an agreement that runs for another 15 years. TJX has an A credit rating from Standard & Poor's, and the New York City-based buyer is a net lease REIT that focuses on the credit tenant lease market.
The company acquired a small property in suburban Ridley Park in 2004, Michael Heneghan, SVP of acquisitions, tells GlobeSt.com, but this is its first major asset in the MSA. "There's great credit in TJX, which has a long-term lease; it's an attractive new asset, and it's in a very tight industrial market."
Heneghan represented Capital Lease Funding. Michael Hines, EVP of the CB Richard Ellis investment properties team and Michael Blunt and Douglas Joseph of CBRE, represented Liberty. Hines calls the pricing "exceptional," noting, "the lease revenue only increases moderately for the first couple of years and then it is flat for the remaining 12 years."
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