Park Place Center in Wyomissing, Pennsylvania — Courtesy: Progress Realty Partners
By Joshua Burd
Two New Jersey-based firms have partnered to acquire a 10-building, 143,000-square-foot industrial flex portfolio in Central Pennsylvania, in a deal valued at nearly $12 million.
In a news release, Progress Realty Partners said it was teaming with Commerce Park Investors in the transaction in Wyomissing, around three miles west of Reading, Pennsylvania, and 75 miles west of New Jersey’s Burlington County. They noted that the portfolio known as Park Place Center spans three parcels totaling 11.13 acres, housing a series of one- and two-story buildings ranging from 2,985 to 55,080 square feet.
The partners added that, while Park Place Center is stabilized, there is a value-add opportunity based on lease rollover and below-market rents.
“What attracted us to Park Place Center is its extraordinary tenant mix and positioning in the Wyomissing submarket,” said Adam Dickert, who oversees Progress Realty Partners’ acquisitions. “This industrial flex portfolio is a great example of diversification, in every sense of the word. Combining minimal downside risk with a tremendous value-add upside is the recipe for success.”
Progress, an affiliate of Tinton Falls-based Progress Capital, said the firm’s Kathy Anderson and Caillin Boles secured acquisition financing with a 75 percent loan-to-value ratio and 12 months of interest only. That was despite the challenge of having a cannabis dispensary as a tenant.
“This is a very exciting deal for us and our limited partners,” said Daniel Salonis, who oversees the firm’s operations. “In real estate, you make your money on the buy. Our acquisition of Park Place Center is a prime example of that.”
