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UPSTATE, NY-Investor David Warneras has closed on his acquisition of a 2.5 million-sf office and industrial portfolio spanning three Upstate markets, first reported by GlobeSt.com in August. The seller is West Conshohocken, PA-based REIT Keystone Property Trust. (Read earlier GlobeSt.com story.)

The acquisition is part of a $178-million purchase that also includes properties in Central Ohio and Pennsylvania, which are included in the transaction due to the fact they are encumbered by debt cross-collateralized with the properties in Upstate New York. The total size of the portfolio is roughly 3.9 million sf.

The New York properties are located in the Albany (10 properties), Syracuse (15 properties) and Rochester (four properties) markets. Nineteen are office assets totaling 1.3 million sf and the remaining 10 are industrial buildings totaling 1.2 million sf. The two industrial properties in Central Ohio are 3530 East Pike and 16725 Square Dr. In Pennsylvania, the properties are 2294 Molly Pitcher Hwy. in Chambersburg and 1001 and 1011 AIP Drive in Middletown.

The buyer is assuming $106 million of fixed rate mortgage debt with an average interest rate of 7.68%, and Keystone is retaining a $27 million mezzanine investment, which will earn an 11% current return.

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