WEST CONSHOHOCKEN, PA-Locally based Keystone Property Trust continues its Pennsylvania buying spree with the purchase of a 677,548-sf distribution center in Harrisburg for $21.5 million. The acquisition is funded with a one-year, $25-million, senior-secured loan. Meanwhile, the REIT also completes a public offering of four million shares of common stock that will infuse its coffers with approximately $78 million to fund more acquisitions.

Toronto-based Royal Bank of Canada and RBC Capital Markets arranged the loan, which has a variable interest rate priced at 1.875% above Libor. Proceeds not devoted to the Harrisburg acquisition will help fund Keystone’s earlier JV acquisitions.

The Harrisburg property is at 3500 Industrial Rd., which abuts the Norfolk Southern Intermodal Yard and is adjacent to I-81 and Route 22. It is 98% leased to a tenant roster than includes SuperValue, Exel and PJAX. “With this acquisition, Keystone owns more than 10.5 million sf of bulk distribution assets in Pennsylvania,” according to A. Donald Chase Jr., SVP.

Merrill Lynch & Co. is the sole underwriter of the public offering, which has an over-allotment option for up to 600,000 additional shares. It can be exercised in whole or in part within 30 days from Nov. 4. Initially, the proceeds of the offering may be used to reduce the outstanding balance on Keystone’s unsecured line of credit. Designated for general corporate purposes, however, the proceeds will also fund future acquisitions.

The REIT trades under KTR on the NYSE. Shares opened at $19.50 a share on Nov. 4, down from their 52-week high of $22.65 a share on Oct. 13 this year. The 52-week low of $15.65 per share, occurred on Jan. 22.

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