Pennsylvania Logistics Hub Trades for $73M

York Logistics Hub. Image courtesy of John Jenks and JLL

New York City-based SK Realty Management acquired York Logistics Hub, a three-building, 1.4 million-square-foot industrial and manufacturing complex in York, Pa., from Patriot Equities for $73 million.

Working on behalf of the buyer, JLL Capital Markets secured a $48.2 million three-year, floating-rate acquisition loan from an unidentified regional bank. JLL also marketed the property on behalf of the seller, a Wayne, Pa.-based real estate investment and development company.

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Located at 601, 621 and 631 S. Richland Ave., the asset is situated along Route 30 and 2 miles from I-83, providing access to the region’s main highway infrastructure. The York site is located near Harrisburg, Pa., within the Central Pennsylvania industrial market. The location enables tenants to reach 40 percent of the U.S. population, six of the top10 MSAs and more than 50 percent of the Canadian population within a day’s drive.

At the time of sale, York Logistics Hub was home to 13 tenants across three facilities. South Campus is a 743,413-square-foot industrial facility anchored by Johnson Controls, which occupies 71 percent of the building for its manufacturing operation. North Campus is a 548,632-square-foot industrial warehouse with redevelopment potential. The South and North Campus buildings feature clear heights ranging from 15 to 46 feet, 34 loading doors, 27 drive-indoors, 12 interior loading doors and ample parking. The West Office Tower is a 116,255-square-foot, multi-story office building with the potential to redevelop into a Class A industrial property.

Strong interest from investors

Senior Managing Director John Plower, a member of the JLL Industrial Capital Markets team that represented the seller, said in a prepared statement York is an excellent industrial location because it has a strong labor base and good connectivity to Harrisburg and Baltimore. He said the property attracted very strong interest from a wide variety of investors and developers because it has good in-place cash flow with the potential for redevelopment of new Class A warehouse space.

Plower and Director Ryan Cottone led the JLL Industrial Capital Markets team in the sale along with Senior Managing Director Jeff Lockard of JLL Industrial Brokerage.

The JLL Debt Placement team representing the borrower included Senior Managing Director Chad Orcutt and Director Michael Pagniucci.