Hillwood Investment Properties, the Texas-based real estate management company, said today its more than $93 million sale of two Cumberland County warehouses was a strategic move and that the Pennsylvania industrial property market is much stronger.
“We are definitely still involved in the market,” said Gary Frederick, Hillwood’s senior vice president.
On Tuesday, New York-based KTR Capital Partners announced it had acquired a nearly 1.2 million-square-foot warehouse in Key Logistics Park at 950 Centerville Road in Penn and West Pennsboro townships from Hillwood. KTR also acquired from Hillwood the 602,500-square-foot warehouse at 1700 Ritner Highway in Carlisle.
The Key Logistics building sold for $59.85 million and 1700 Ritner sold for $33.4 million, Frederick said.
KTR declined to comment on the acquisitions.
The Key Logistics warehouse is home to Florida-based Office Depot Inc.’s distribution center, and 1700 Ritner is leased by Wisconsin-based Bay Valley Foods. Hillwood had acquired the properties in 2011 and 2010, respectively.
Pennsylvania’s industrial properties market, including that in the midstate, is improving steadily, Frederick said.
“We acquired these buildings when markets were much weaker,” he said.
Dallas-based Hillwood is owned by businessman and 1990s politician H. Ross Perot Sr. The company also owns 20 acres in Derry Township that it plans to develop for warehousing and 1.4 million square feet of warehousing nearby in Lebanon County.