X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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

HARRISBURG, PA-In its third transaction in this market within six months, DeSanto Realty Group has acquired Northwoods Crossing Office Park for nearly $22 million, or about $143.30 per sf. Simultaneous with the close of the sale, the property was fully subscribed with an equity investment of almost $10.4 million spread among 21 tenant-in-common investors.

The asset contains two contiguous class A office buildings aggregating 153,190 sf on a 10.5-acre tract. The larger, 100,000-sf building is fully leased to United Concordia Inc., which also leases 20,000 sf in the smaller building. Other tenants in that building include Comcast, Cingular Wireless and Variable Annuity Life Insurance Co., and the entire complex is 95% leased.

The seller is Fran McNaughton, a locally based developer. Calabasas, CA-based AFA Financial served as managing broker-dealer in the transaction.

Gary DeSanto, chief executive officer, tells GlobeSt.com that Media-based DeSanto obtained a $15.5-million loan from Citigroup Global Marketing for the buy. “Although UCI has six years remaining on its lease, we built a reserve into the funding to cover the cost of re-tenanting their space. It’s hard to go back to the 21 investors within the TIC structure in six years,” he explains.

The UCI rent rate is approximately $16 per sf, according to DeSanto. The other rates in the complex range between $19 per sf and $22 per sf, he says.

In July, as reported by GlobeSt.com, DeSanto acquired the 123,379-sf Crums Mill office complex here for $22 million and in August 2005 bought Yellow Breeches Office Park for $13.5 million. All three Harrisburg assets are TIC properties and all are now fully subscribed. “Having investors in place at the time of an acquisition is not usually the case in TIC deals,” DeSanto says. He attributes it to his company’s “ability to leverage our track record in identifying and acquiring properties that provide value for investors while also helping them capitalize on the 1031 exchange.”

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
  • 3 free articles* across the ALM subscription network every 30 days
  • 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 © 2020 ALM Media Properties, LLC. All Rights Reserved.