X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the industrial market, click here.)

PHILADELPHIA-FirstCal, the joint-venture fund between Chicago-based First Industrial Realty Trust and California State Teachers’ Retirement System, spends $8.2 million, or just over $27 per sf, for the 301,115-sf rail-served industrial building located on 13 acres at 2500 Grant Ave. in Northeast Industrial Park. The seller is Grant Avenue Associates, a private real estate investment partnership.

The facility was built in the early 1950s and is the former corporate headquarters for Penn Fruit, a grocery chain that went out of business in the 1970s. Peter Corcoran, director of the Philadelphia region in First Industrial’s Exton office, says his company plans to spend several million on improvements to “bring the property to institutional investment standards.” The renovation includes a new roof, exterior and interior refinishing, new loading doors, upgraded lighting and a repaved parking lot.

The building is currently about 30% leased to three tenants Forman Mills, Linen Factory Outlet and Jomar Hosiery. The remaining approximately 200,000 sf includes warehouse and retail space, with the latter providing exposure along Grant Avenue opposite an existing shopping center.

Corcoran represented First Industrial. Patrick J. Green, SVP of industrial brokerage in the local office of CB Richard Ellis, represented the seller. Green and Paul Wierzel, a First Industrial senior leasing and marketing manager, are marketing the space. The warehousing area can be divided into units of from 30,000 sf to the full 200,000 sf, and the asking rental rate for warehouse space is $3.75 per sf, triple net. Office areas can be built to suit, Wierzel says.

FirstCal has a total investment capacity of approximately $950 million, with an expected capitalization of 35% equity and 65% debt. In a statement, Mike Brennan, First Industrial’s president and CEO, says, “this joint venture provides us with greater capacity to expand our share of the most lucrative part of the industrial real estate business, the development and repositioning of corporate real estate assets.” In late summer, First Industrial entered South Florida with the opening of an office in Miami. In September, using FirstCal funding, it acquired a 268,000-sf facility in the Medley submarket there and an eight-acre site for development of up to 156,000 sf in Flagler Station Business Park.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.