Newmark Grubb Knight Frank (NGKF) Capital Group announced it has completed the sale of the 410,389-square-foot Turnpike Distribution Center in New Galilee, Penn., 30 miles northwest of Pittsburgh. Centurion Investments LLC purchased the fully leased warehouse for $20 million.
Kenneth Szady, SIOR, CCIM, executive managing director, and Boris Shraybman, managing director, both with NGKF’s Capital Group in Chicago, worked with Louis Oliva, SIOR, CCIM, executive managing director at Newmark Grubb Knight Frank in Pittsburgh, to market and sell the asset on behalf of a limited partnership. The limited partners of Turnpike Distribution LP included the design builder and co-developer, Al Neyer, headquartered in Cincinnati with an office in Pittsburgh; the local co-developer, Castlebrook Development, which acquired the site and necessary entitlements; and The ERECT Funds, a regional source of construction financing for union-build commercial properties, which is managed by PenTrust Real Estate Advisory Services, Inc. of Pittsburgh and AmeriServ Trust and Financial Services Company of Johnstown, Penn.
“The sale demonstrates how investors are expanding their acquisitions into secondary markets from the primary markets in search of yield,” noted Mr. Szady. “We expect more owners in the secondary markets to bring product to market over the next 12 months to take advantage of this liquidity trend.
“This sale underscores the advantages that Newmark Grubb Knight Frank brings to the table by combining local market expertise with a highly efficient, national investment sales platform,” said Mr. Szady. “Louis Oliva is the top-producing industrial specialist in Pittsburgh and knew precisely which features to emphasize in marketing this high-cube, state-of-the-art warehouse for our client. Through NGKF’s proprietary capital markets program, we quickly identified capable investors with an appetite for Class A product in secondary markets.”
Mr. Oliva said one of the strongest selling points was in-place leasing. The warehouse at 1750 Shenango Road in New Galilee is 100 percent leased to three high-credit tenants: Records storage company Iron Mountain is the largest tenant and occupies 168,942 square feet; Genco occupies 121,369 square feet, and Mine Safety Appliances occupies the remaining 120,078 square feet.
“The challenge of securing the best price for this client hinged on effectively accessing the national investor marketplace to draw new capital into Pittsburgh, rather than simply shopping the asset around to local and regional buyers,” Mr. Oliva said.
Built in 2007 at the intersection of I-76 (Pennsylvania Turnpike), I-376 and State Routes 60 and 351, Turnpike Distribution Center is within a day’s trucking of more than 50 percent of the U.S. population, and offers the latest in distribution technology to allow high-cube stacking for ultra efficiency.
In the greater Pittsburgh area, Mr. Oliva has been directly involved in the sale or lease of more than 40 million square feet of office/industrial property and more than 50 million square feet of land sales/development collectively valued at more than $1 trillion throughout his career.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with its affiliates and London-based partner Knight Frank, Newmark Grubb Knight Frank employs more than 11,000 professionals, operating from more than 340 offices in established and emerging property markets on five continents.
With roots dating back to 1929, Newmark Grubb Knight Frank’s strong foundation makes it one of the most trusted names in commercial real estate. Its integrated services platform includes leasing advisory, global corporate services, investment sales and capital markets, consulting, program and project management, property and facilities management, and valuation services. A major force in the real estate marketplace, Newmark Grubb Knight Frank serves the local and global property requirements of tenants, landlords, investors and developers worldwide. For further information, visit www.newmarkkf.com.
Newmark Grubb Knight Frank is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the wholesale financial and real estate markets. For further information, visit www.bgcpartners.com.