Cushman & Wakefield Completes Sale of 358,000-Square-Foot Lehigh Valley Industrial Property
EAST TEXAS, Pa., May 9, 2014 - Commercial real estate services firm Cushman & Wakefield has orchestrated the sale of 5700 Lower Macungie Road in East Texas, Pa. The 358,000-square-foot Lehigh Valley property, consisting of 10 interconnected industrial/flex buildings, traded for $3.5 million.
Seller Day-Timer®, a division of ACCO Brands, was represented by the Cushman & Wakefield team of Gerry Blinebury, Patrick McBride and Adam Campbell in Harrisburg; Leah Balerno and Marie Connell in Philadelphia; and Lou Hall and Daniel Wilkins in Chicago. Buyer Smooth-On, Inc. was represented by Mike Adams of NAI Summit.
"The building had been on the market for approximately one year, and Cushman & Wakefield was brought in as listing agent within just the past 90 days," said Blinebury. "In that time, we were able to identify the buyer and get to the closing table."
For seller Day-Timer®, a manufacturer and distributor of organizers, day planners and other branded office products, 5700 Lower Macungie Road was vacant at the time of sale. "With the technology today, there has been less demand for their print products, and this location became excess real estate," said Blinebury.
With the transaction, buyer Smooth-On, Inc. will expand and relocate from its current location in Easton, Pa. The company produces mold-making and casting materials, including rubber, plastics, resins and others, utilized for special effects by the motion picture industry, as well as for sculptures and architectural ornamentals.
The site's original building was constructed in 1957, and the nine interconnected buildings were subsequently constructed as additions on the 31-acre site. "The location is in a unique setting at a primary intersection of East Texas, which is part of Lower Macungie Twp.," said Blinebury. "It is not part of a conventional industrial park but is in a very conducive environment for Smooth-On's operation, which will be primarily manufacturing with a distribution component. The bottom line is that it will provide good employment opportunities for the local community."
The transaction is also the result of close cooperation between the seller, buyer and local officials. "Smooth-On and Day-Timer® spent a significant amount of time working with township representatives to make sure the new use would be accepted, approved and promoted," said Blinebury. "In the end, it was a unique partnership, and the town is equally excited about having Smooth-On in the community."
Smooth-On's new location is close to major highways, including Routes 222, 22, 309, I-78 and the Pennsylvania Turnpike. Production space features ceiling heights of up to 16 feet, and warehouse space offers ceiling heights of 22 feet. The site offers abundant parking, with more than 740 spaces.
The Lehigh Valley industrial market of northeastern Pennsylvania "is active on all fronts," said Blinebury, "not just for manufacturing, but also for big-box distribution and smaller flex product. The market is currently approaching a three percent vacancy rate, and we will be seeing substantial construction starts.
"Indeed, several speculative buildings are scheduled to break ground this spring in this market," he said.
Cushman & Wakefield's industrial brokerage platform provides global resources and local expertise for tenant and landlord representation, disposition and acquisition services, transaction management, and industrial consulting including labor and demographic analysis. In 2013, this group completed more than 7,600 industrial real estate transactions - totaling 253 million square feet - with an aggregate value of nearly $7.4 billion.