Chambers Street Acquires Industrial Portfolio in NE Pennsylvania
- Nov 20, 2014
Chambers Street Properties has acquired a four property, 1,644,480 million-square-foot industrial portfolio located in the Northeast Pennsylvania industrial market for $105.7 million.
“The appeal was the high-quality of the properties and the tenancies in those properties with over 90 percent being investment-grade level tenants,” Philip Kianka, Chambers Street Properties’ executive vice president & COO, told Commercial Property Executive. “We were very confident and comfortable that we had a nice lineup of properties.”
The four Pennsylvania-based properties consist of a 744,000-square-foot single-tenant building at 325 Center Point Blvd. in Pittston; a 615,000-square-foot single-tenant building at 550 Oak Ridge Dr. in Hazleton; a 144,000-square-foot single-tenant building at 125 Capital Road in Pittston; and a 140,800 square-foot multi-tenant building at 14-46 Alberigi Drive in Jessup.
“Right now, we’re looking to acquire more industrial-type assets and increase our exposure to the industrial-property sector and this was a very attractive portfolio in a location we don’t have currently any existing properties,” Kianka said. “It’s expanding our reach into some new locations that we consider attractive logistics and industrial locations in the Northeast.”
The portfolio is occupied by a total of six tenants, including one of the world’s largest Internet retailers and a multi-national paper products company. In total, the portfolio is 100 percent net leased with annual rental increases ranging from 2 to 2.5 percent, and has a weighted average remaining lease term of 3.6 years. Two of the buildings have expansion capacity in aggregate of approximately 400,000 square feet.
A large network of interstate highways, including I-81, 1-80, I-78, I-84 and I-476, runs through this region, providing access to all major population centers in the Northeast and the Mid-Atlantic. Additionally, the properties are situated near three major East Coast ports.
“We feel it’s a growing area. The I-81 corridor continues to thrive nicely. They’ve had excellent leasing volume during the course of the last few years,” Kianka added. “In addition to that, there are quite a few other people that we know that have been looking in the market to either expand or find locations in that corridor for operations. This was an excellent opportunity for us.”
The acquisition brings Chambers Street Properties’ 2014 buys to more than $200 million.