RIDGEWOOD, NJ-In an off-market deal, the locally based Heritage Management Co. has acquired a 13-building, 2.5-million-sf industrial portfolio. Heritage is paying $86 million for the portfolio, which is spread across New York, Pennsylvania and Ohio. The seller is a joint venture of investor David Werner of Brooklyn, NY and the Skokie, IL-based American Landmark Properties.
"The offering provided great value and a strong, stable tenant base," says Jeffrey Greenberg, a principal of Heritage Management. According to Greenberg, the largely warehouse/distribution portfolio was 95% occupied at the time of sale, and its diversified roster of tenants includes retailers Staples and Wegmans, data manager Iron Mountain, plus Sumitomo and Owens Brockway, to name a few.
"These buildings are great additions to our portfolio," he says, noting that the properties will be managed in-house. "They increase our industrial presence significantly and provide geographic diversification into Ohio and Pennsylvania, two new markets for us."
On the financial end of the deal, Jon Mikula of Holliday Fenoglio Fowler's Florham Park office arranged the debt financing, which was provided by David Goldfisher from LaSalle Bank. Heritage Management also used 1031 Exchange funds from its recent sale of a building in Garden City, NY in the purchase.
The deal also caps a 12-month period in which Heritage, a 70-year-old privately held firm nearly doubled its holdings, currently controlling more than four million sf of office, industrial and retail space. During that 12-month period, the company was involved in more than $250 million in acquisitions, dispositions and refinancings.
"We expect our 2007 activity to mirror 2006," Greenberg says. "Our activity is conducted on a deal-to-deal basis through established relationships. We're always looking for great properties to acquire, as well as opportunities to add value to those we already have."
The company's current owned and managed portfolio totals some 60 properties in 20 states. Among its hallmark properties are Four Gateway Center and 550 Broad St., both office buildings in downtown Newark, where it is a key player, as well as 300 Harmon Meadow Blvd. in Secaucus. As reported by GlobeSt.com, Heritage just completed a $20.5-million refi on the latter asset, a 123,000-sf office building, in December.
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