Central Pennsylvania Industrial Asset Changes Hands
- Feb 25, 2016
By Keith Loria, Contributing Editor
Carlisle, Pa.—American Realty Advisors has acquired 2 Ames Drive, a Class A, cross-docked bulk warehouse/distribution property in Carlisle, Pa., from a joint venture between Dermody Properties and PCCP LLC for a reported $62.4 million.
The modern building encompasses 700,000 square feet on more than 53 acres and at the time of the sale was 100 percent leased to a Fortune 500 tenant through 2024.
“This property is a core quality asset built to LEED standards located in one of the largest bulk distribution markets in the U.S., with strong liquidity from both institutional and foreign investors,” Eric Cannon, American’s senior director of investments told Commercial Property Executive. “In addition, American is presently focused on assets with long-term leases to mitigate potential short to medium-term economic headwinds.”
The property features 32’ clear height, full air conditioning, 481 car spaces, 149 trailer spaces, T-5 lighting, and 8,000 amps of power, and was designed and constructed to LEED Core & Shell standards.
Located just one mile from Interstate 81 at Exit 44 in Carlisle, a city widely considered the hub for super-regional bulk warehousing and distribution within the greater Central Pennsylvania region, the property features a significant amount of recently added landlord and tenant improvements.
The I-78/I-81 Industrial Corridor has exhibited significant net absorption in the past several years—over 20 million square feet of industrial space was leased from 2014 through mid-2015.
“One of the key drivers was its location, given its proximity to the super-regional transportation infrastructure of highways, intermodal and parcel hubs and being situated within a one-day truck drive to approximately 40 percent of the U.S. population,” Cannon said.
The area has become a Tier One East Coast inland market, with top industrial tenants including FedEx, Proctor & Gamble, Nordstrom, Georgia Pacific, and Walmart all occupying distribution space in the Corridor.
According to Cannon, although there’s no immediate plans for updating the facility, American very much has an active asset management philosophy so will maintain the property to the highest institutional standards in the bulk industrial space markets.
Dermody Properties originally acquired the property in 2012 and made improvements in 2014.
“This facility provides its tenant easy access to the region’s transportation infrastructure, including highway, intermodal and parcel hubs, to cost effectively distribute goods throughout the entire Northeast region,” said Gene Preston, a partner in Dermody Properties’ East region office.
Michael Hines and Brian Fiumara of CBRE National Partners represented the sellers in the transaction.