March 22, 2023 9:00 AM
Newmark[i] announces the $13.15 million sale of two industrial buildings, 2470 and 2500 Wheatsheaf Lane, in Philadelphia, Pennsylvania. The properties sit atop a 6.73-acre parcel and span 32,435 square feet. Newmark Associate Director Ryan Guittare represented the seller New York City-based IG Logistics, Imperium Capitals Industrial Platform (“Imperium”), which specializes in the acquisition of industrial in select U.S. markets, and the undisclosed buyer in the sale transaction.
“We congratulate both IG Logistics and the undisclosed buyer on closing this transaction, which represents a true win-win outcome for both seller and buyer,” said Guittare. “Primely located and stabilized, the Wheatsheaf Lane properties represented an ideal opportunity for a buyer to extend their footprint within one of the tightest industrial markets in the country.”
2470 and 2500 Wheatsheaf Lane benefits from the growing e-commerce user demand for assets that provide opportunities for parking, staging and loading large fleets of delivery vehicles. These features, paired with urban markets’ supply imbalance for fleet storage, provide landlords with significant premiums–making this a highly attractive opportunity for the buyer.
The portfolio was 100 percent leased at the time of sale to tenants GSR Global, a logistics company that imports and exports freight, full container and less-than-container load freight, and H&E Equipment Services, one of the U.S.’s largest integrated equipment services companies, specializing in heavy construction and industrial equipment.
Situated along I-95, at the base of the Betsy Ross Bridge, the properties are immediately proximate to Philadelphia and the New Jersey Turnpike. Additionally, the two-building portfolio is 5.5 miles from Center City Philadelphia, offering access to the region’s population hub. Further, more than $81 million in road improvements have been implemented to enhance connectivity at the I-95 and Betsy Ross Interchange.
According to Newmark Research, the Greater Philadelphia industrial market activity was vigorous throughout 2022, closing the fourth quarter with a 3.9% vacancy rate. Further indicating the market’s strength was the year-to-date positive absorption of 13.3 million square feet, surpassing the previous year’s total by nearly 3 million square feet. Despite the nationwide slowdown in e-commerce in the second half of 2022, Philadelphia did not experience a noticeable shift. Contrarily, with 26 million square feet of new product under construction, the highest in the market’s history, confidence is still strong amongst local developers.
[i]Dba Newmark Real Estate in Pennsylvania
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of approximately $2.7 billion for the year ending December 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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