News release

York Logistics Hub trades for $73M

JLL Capital Markets closed the sale of the industrial complex and arranged the $48.2M acquisition loan for the new owner

August 25, 2021

PHILADELPHIA, August 25, 2021JLL Capital Markets announced today that it has closed the $73 million sale of and secured a $48.2 million acquisition loan for York Logistics Hub, a three-building complex comprising 1.4 million square feet of industrial and manufacturing space within the Pennsylvania community of York.

JLL marketed the property on behalf of the seller, Patriot Equities. SK Realty Management purchased the asset. Additionally, working on behalf of the new owner, JLL placed the three-year, floating-rate acquisition loan with a regional bank.

The 72.5-percent-occupied York Logistics Hub comprises the South Campus, North Campus and West Office Tower, which, together, are home to 13 tenants. South Campus is a 743,413-square-foot industrial facility anchored by Johnson Controls, which occupies 71 percent of the building for its mission-critical manufacturing operation. North Campus is a 548,632-square-foot industrial warehouse facility with redevelopment potential. South and North Campus features clear heights ranging from 15 to 46 feet, 34loading doors, 27 drive-in doors, 12 interior loading doors and ample parking. The West Office Tower is a 116,255-square-foot, multi-story office tower with the potential to redevelop into a Class A industrial property.

Situated at 601, 621 and 631 S. Richland Ave., York Logistics Hub is in York, a south-central Pennsylvania community near Harrisburg and within the Central Pennsylvania Industrial market. The property is along Route 30 (Lincoln Highway) and two miles from Interstate 83, providing access to the region’s critical highway infrastructure. This infill location allows tenants to reach 412,401 residents within a 30-minute drive, along with the access to over 40 percent of the U.S. population, six of the top 10 U.S. MSA’s and more than 50 percent of the Canadian population all within a day’s drive.

The JLL Industrial Capital Markets team representing the sellers is led by Senior Managing Director John Plower and Director Ryan Cottone, along with Senior Managing Director Jeff Lockard with JLL Industrial Brokerage.

The JLL Debt Placement team representing the borrower included Senior Managing Director Chad Orcutt and Director Michael Pagniucci.

“York is a fantastic industrial location, as it has a strong labor base and good connectivity to Harrisburg and Baltimore,” Plower said. “The sales process saw very strong interest from a wide array of investors and developers, given the great in-place cash flow with the potential in the future for re-development of new Class A warehouse.”

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 and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

About Patriot Equities

Patriot Equities is a real estate investment and development company with a singular focus on the acquisition, ownership and operation of corporate assets. 

About SK Realty Management

SK Realty Management (SKRM) is an opportunistic real estate investment group that specializes in the purchase of warehouse distributions centers located in the Northeast and Midwest. SKRM has focused on acquiring two distinct asset types: a) stabilized core assets with cash-on-cash yields averaging above 10 percent and b) opportunistic event-driven transactions with internal rate of returns in excess of 20 percent. Since its inception, SKRM has delivered transaction returns of over 50 percent.

SKRM's major equity sources have been major domestic opportunity funds, including Angelo Gordon, Walton Street, and Blue Vista Capital Partners, as well as several high-net-worth individuals. Additionally, we have relationships with a few non-real estate related family offices who want to invest in real estate to diversify their portfolios. SKRM's current portfolio is in excess of $500 million of real estate assets.