Woodmont Industrial Partners and AEW Capital Joint Venture Acquires Six-Building Capital Business Center
Extensive Redevelopment and Renovation Effort Planned for Middletown, Pa. Site
FAIRFIELD, NJ – (July 24, 2013)– Woodmont Industrial Partners, in joint venture with AEW Capital Management (AEW), today announced the recent acquisition of Capital Business Center, a six-building, 1.55-million-square-foot industrial complex in Middletown, Pa. The center was acquired from an institutional owner in a transaction facilitated by Michael Hines, Brian Fiumara and Brad Ruppel of CBRE National Partners. AEW acquired the property on behalf of AEW Partners VI, the sixth in the firm’s series of opportunistic funds.
The venture plans to demolish two 1950-vintage Class C buildings and construct the site with two LEED-certified, Class A warehouse facilities totaling approximately 530,000 square feet. They also intend to make significant capital improvements to the other buildings in order to bring them up to current institutional standards. To further emphasize new ownership’s commitment to transforming the property the center has been renamed Capital Logistics Center to better reflect its strategic location next to Harrisburg International Airport.
The six properties that comprise Capital Logistics Center are:
Buildings to Remain:
300 Hunter Lane
600 Hunter Lane
400 1st Street-Expansion
500 Industrial Way
Buildings to be Redeveloped:
400 First Street
401 First Street
Capital Logistics Center boasts a prime location that fronts the Pennsylvania Turnpike and is less than two miles from the Harrisburg East Interchange. Additionally, the property is at the confluence of Routes I-283, I-83 and 322, and Harrisburg International Airport and is within five miles of I-81. The CBRE team of Michael Hess, Patrick Lafferty and Bart Anderson is handling the leasing assignment.
“This is a significant opportunity for Woodmont Industrial Partners and AEW and a sizeable addition to our growing portfolio,” said Eric Witmondt, Principal of Woodmont Industrial Partners. “This property has tremendous untapped potential, particularly given the lack of modern Class A industrial product delivered to the East Shore of Harrisburg.”
Marc Davidson, Managing Director at AEW and Portfolio Manager for AEW Partners Funds, added: “Today’s end user requires updated, modern warehouse facilities. This is an opportunity to acquire a large-scale business park that will undergo a substantial upgrade program in order to make these properties more attractive to major industrial users in this market.”
Recent acquisitions for Woodmont Industrial Partners include the 385,000-square-foot 9747 Commerce Circle in the Arcadia West Industrial Park in Kutztown, Pa.; 34 Dauphin Road, a 185,000-square-foot building in Mechanicsburg; and the 729,000-square-foot I-78 Logistics Center at 111 Cokesbury Road in Clinton, N.J. The joint venture’s focus is to acquire industrial properties in seaport and inland port markets along the Eastern U.S.
About Woodmont Industrial Partners
Woodmont Industrial Partners is an affiliate of Fairfield, New Jersey based Woodmont Properties, a leading real estate development and management firm established in 1963. Woodmont Industrial Partners was formed in 2011 and is focused on the acquisition opportunities in select, high-barrier-to-entry and globally oriented seaports of New York/New Jersey, Baltimore and South Florida, and the inland ports of the Lehigh Valley and Harrisburg regions in Pennsylvania. The goal is to create a portfolio of high-quality assets via the acquisition of individual properties as well as development opportunities. www.woodmontindustrialpartners.com
Founded in 1981, AEW Capital Management, L.P. (AEW) provides real estate investment management services to investors worldwide. One of the world’s leading real estate investment advisors, AEW and its affiliates manage $35.8 billion of capital invested in approximately $49.0 billion of property and securities in North America, Europe and Asia (as of March 31, 2013). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Boston, Los Angeles, London, Paris, Hong Kong and Singapore, as well as additional offices in eight European cities. For more information please visit www.aew.com.