Lehigh Valley warehouse sells for $201.5M

PHILADELPHIA, Apr. 27, 2021 – JLL Capital Markets announced today that it has closed the $201.5 million sale of a Class A industrial warehouse/distribution center totaling 1.03 million square feet at 951 Willowbrook in the Lehigh Valley community of Northampton, Pennsylvania.

JLL marketed the properties on behalf of the seller, a joint venture between Rockefeller Group and PCCP, LLC. CenterPoint Properties purchased the asset.

951 Willowbrook is fully leased to a third-party logistics company that services e-commerce distribution for an American multi-national technology company. The long-term lease with more than nine years remaining provides in-place cash flow for the foreseeable future. The property is part of Rockefeller Group Logistics Park, a master-planned industrial park within a core location in the heart of the Lehigh Valley industrial market. This highly sought-after logistical location is proximate to Interstates 78 and 476 and Route 22, providing exceptional accessibility to the entire Lehigh Valley region, Philadelphia and New York City.

Rockefeller Group and PCCP broke ground on the building in 2018 and completed construction in the fall of 2020. 951 Willowbrook offers best-in-class, new generation specifications, including cross-dock loading, multiple curb cut entrances, full truck court circulation, 40-foot clear heights, ample trailer and car parking, LED lights, ESFR sprinkler system and 185-foot truck court with a 60-foot concrete apron. 

JLL Research’s Eastern and Central Pennsylvania Industrial Insight - Q1 2021 report details how, after a record year of leasing, positive net absorption and rent growth in 2020, tenant demand has continued to surge higher into 2021. With a total vacancy of 6.4%, the Lehigh Valley Industrial submarket’s average asking rent is the second highest – after suburban Philadelphia – in the Eastern and Central Pennsylvania Industrial market, as this demand pushed rents for Class A properties into new heights.

“The Lehigh Valley has proven to be a core logistics market, as shown by investor demand for these buildings during our marketing this past year,” said Mark Shearer, Senior Managing Director for Rockefeller Group’s NJ/PA Region.  “This was our first development in the region, and we look forward to continuing our development activities in Eastern Pennsylvania.”

The JLL Capital Markets team representing the sellers was led by Senior Managing Director John Plower, Director Ryan Cottone and Senior Managing Director and Co-Head of JLL’s Industrial Capital Markets group John Huguenard, along with Vice Chairman Paul Torosian, Vice Chairman Rob Kossar and Senior Managing Director Jeff Lockard.

“The property presented an exceptional opportunity to acquire a large scale, new generation building in the core of the Lehigh Valley market,” Plower said. “The park’s location, adjacent to a massive multinational delivery services company’s hub, makes e-commerce operations a logical use within the surrounding area for years to come. 

“This was a terrific project for JLL’s industrial practice, and we were fortunate to work on behalf of Rockefeller and PCCP, first as leasing agents and then to continue to advise the partnership through disposition of the building,” he added. “This truly was a successful outcome for all parties involved.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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