Cushman & Wakefield's Philadelphia Capital Markets team orchestrated the sale of a five-building industrial portfolio in the sought-after Lehigh Valley market from High Street Realty Company to Cabot Properties. Both firms are based in Boston, MA.
The buildings, 964, 966 and 999 Postal Road in Allentown and 7331 and 7350 William Avenue in Fogelsville, total 271,045 square feet and sold for $21.3 million, according to Joseph Hill, Jr., executive director with Cushman & Wakefield. Hill collaborated with the team of Robert Yoshimura, Gerry Blinebury and Eric Mattson, which represented the seller.
"The buyer recognized the value in this offering of well-maintained, multi-tenanted regional distribution buildings strategically located in a high rent growth market," said Hill. "The combined portfolio boasts 92 percent occupancy and a prominent tenant roster that includes W.B. Mason and Air Products & Chemicals, Inc."
Cushman & Wakefield's Jeffrey Williams, senior director in the Conshohocken office, has been retained as exclusive leasing agent for the properties, which are situated along the Lehigh Valley's Interstate 78 distribution corridor. Driven by ongoing demand from logistics and e-commerce companies, the region has emerged as one of the most robust markets for industrial product on the eastern seaboard. The market offers proximity to a diverse labor pool, large population centers and major transportation arteries, with two-thirds of the U.S. population within a day's drive.
"The industrial market in general continues to tighten and vacancy in the Lehigh Valley is under five percent," Hill noted. "Demand for space shows no signs of slowing, and with lower vacancies we expect increased pressure on rental rates."
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