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HARRISBURG, PA-Hayden Real Estate Investments LLC has acquired three warehouses, totaling 291,923 sf in this submarket. It acquired them for an undisclosed price from a family trust that owns the main tenant, Tony Hayden, principal at the firm tells GlobeSt.com. That tenant is Ollie’s Bargain Outlets, which has five years remaining on a long-term lease at all the warehouses and is using the facilities as the distribution center for its 62 retail stores in the mid-Atlantic.

Hayden says the trade was a good one based on the fundamentals alone. As an added bonus, though, this transaction gives Hayden Real Estate a foot in the door to assist Ollie’s as its doubles its distribution square footage. “We want to be their landlord for next deal too,” Hayden says.

The three warehouses are located along Route 22 in the rapidly growing I-81/I-83 Corridor. That is one reason why the company likes the Harrisburg market in general, Hayden says–its access and proximity to the major markets along the Eastern Seaboard. The I-81/I-83 Corridor is used to serve the mid-Atlantic Region from New York to Richmond to North Carolina, he says.

Right now Harrisburg is proving difficult to acquire new industrial product, he says. “So when we found this deal we were very excited about it, even without the Ollie’s connection.” Ollie’s is paying below market rents for the rest of its term. “We will be able to reposition the buildings when the lease rolls over and do very well,” he says. Asking rate for the facility are the market $4 per sf, triple net. The portfolio traded at a 9% cap rate, Hayden adds.

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