Sears Logistics Renews 507,000-SF Lease

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MIDDLETOWN, PA-Sears Logistics Services Inc. has renewed its lease for all of the 507,000-sf warehouse/distribution facility at 2040 N. Union St. Denver-based ProLogis acquired the building in late 2004 when it acquired Keystone Property Trust, which was then headquartered in West Conshohocken.

Keystone paid $20 million for the building in January 2003. It was completed in 1998, according to John Van Buskirk, a partner in the Harrisburg-based Industrial Properties Group at NAI/CIR. Van Buskirk and Jack Shepley, a partner in the same office, represented the tenant in the negotiations.

Van Buskirk declined to disclose the aggregate value of the lease or the asking rent rate. According to a year-end 2006 report from the Philadelphia office of Cushman & Wakefield, the average rent rate for warehouse/distribution space in Central Pennsylvania is $4.01 per sf.

Sears Logistics Services is a unit of Hoffman Estates, IL-based Sears Roebuck & Co. and Sears Holdings. It provides home delivery of products sold in Sears stores and also supplies Sears stores with merchandise from manufacturers and handles other transportation and warehousing services for the Sears’ retail network.