Philadelphia Commercial Real Estate Wrap-Up – October 2020

Philadelphia. Image by David Mark via Pixabay.com

Philadelphia continued to slowly navigate through the economic uncertainty in October. Employment within the metro had improved slightly through September, according to a report from the Federal Reserve Bank of Minneapolis, despite the persistence of permanent layoffs. Movement within the metro’s commercial real estate sectors was slow albeit steady, with activity concentrated on industrial assets. However, some activity in other areas—even within the troubled hospitality sector—pushed forward. Read our October list of Philadelphia must-knows:

1. DEAL – Ivy Realty makes $20 million industrial acquisition.

Jerith Manufacturing sold the 440,000-square-foot warehouse at 14400 McNulty Road, according to Yardi Matrix information, with the assistance of JLL. Built in 1996 as distribution center for IKEA, the LEED-certified facility has insulated ceilings and 25 dock-high loading doors. The 34.8-acre property is 19 miles northeast of downtown Philly near the intersection of U.S. Route 1 and the Pennsylvania Turnpike.

2. DEVELOPMENT – Hyatt Centric opens in Center City.

The 332-key luxury hotel rises 13 stories at 1620 Chancellor St., with a range of amenities including more than 5,000 square feet of meeting space, a lobby bar and a restaurant. Hyatt Hotels Corp. broke ground on the $81 million project in 2018, according to Philadelphia Business Journal. DAS Architects provided architectural services and Clemens Construction Co. served as general contractor. Initially set for Jun. 30, the opening was delayed due to the pandemic.

3. FINANCING – NAI Emory Hill lands $28 million loan for Wilmington office campus.

The note from Jackson National refinances Little Falls Centre, a two-building property totaling 194,000 square feet, Yardi Matrix shows. Completed in 1988, the four-story buildings are joined by a courtyard and occupy more than 18 acres at 2711 and 2751 Centerville Road. Located some 5 miles northwest of downtown Wilmington, the property has direct access to the Lancaster Pike.

4. LEASING – Perkasie industrial development lands first tenant.

Fres-co System USA Inc. signed a long-term, 101,920-square-foot lease and will occupy the entire first building of Pennridge Airport Business Park. Adjacent to the Pennridge Airport at 500 N. Ridge Road, the $60 million, six-building project will total 600,000 square feet of space across 88 acres at full build-out. Colliers International represented the landlord, Pennridge Development Enterprises, while CBRE assisted the tenant.

5. DEAL – Binswanger closes two Pennsauken sales.

Senior Vice President & Partner Chris Pennington assisted Simmons Pet Food in the $18 million sale of two industrial assets totaling 390,498 square feet. KB Furniture acquired the 201,000-square-foot building at 6851 River Road for $10.6 million. In a separate transaction, Kenover Marketing paid $7.4 million for the 189,498-square-foot property at 9130 Griffith Morgan Lane. Situated near Highway 90 and U.S. Route 130, both structures are within 10 miles of downtown Philadelphia.

BONUS READ: According to a recent Savills report, the CBD’s trophy market saw little improvement in activity during the third quarter, with year-to-date leasing activity nearly 60 percent lower than the same period in 2019. Availability declined quarter-over-quarter but still remained higher than the start of the year. Read more about it here.