Multi-State Industrial and Warehouse Portfolio Hits the Market at $97 Million
Daniel Edward Rosen April 10, 2012, 9 a.m.
A portfolio of industrial and warehouse spaces scattered throughout three states (and totaling over 2.5 million square feet) is up for sale, and could all be yours for a cool starting price of $97 million.
The portfolio, owned by an unidentified private family investment group, features warehouse properties in Pennsylvania, upstate New York, and Ohio.
“It’s probably for someone who is looking to acquire a strong cash-flowing property with debt in place at a low assumption rate of a half percent,” said Stuart Gross, an executive managing director at Eastern Consolidated, who is handling the sale of the portfolio.
Among the properties being offered include a 621,000-square-foot warehouse for office supplier Staples in Chambersburg, Pennsylvania (with “state of the art robotics distribution”) and a 104,000-square-foot warehouse in Guilderland, New York that currently houses McLane Company, a supply chain services company.
There is also a 133,500 square foot property for Sumitomo Electric in Marysville, Ohio, along with several facilities in Rochester, New York.
The asking price is $22 million over the existing $75 million in debt, said Mr. Gross. The $75 million debt is amortizing over a 30-year period and is due in five years. The entire portfolio is currently 89 percent occupied.
The portfolio offers high yields and could be traded as a 1031 exchange.
“The owner would stay in and operate the property if they so choose,” said Mr. Gross. “It could either be a hands-on family owner with 1031 money, or a passive-type smaller fund that would only invest because there is an operating owner.”
Eastern Consolidated chief executive officer Peter Hauspurg is also working on this portfolio with Mr. Gross.