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Hillwood: $93M warehouse sale strategy, market strong

By , - Last modified: May 24, 2012 at 12:18 PM

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.



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UdyRegan April 11, 2018 12:57 am

It's interesting to think about what other property units and assets a real estate management firm has their money invested in. I actually think that a large number of these companies would have a big amount of funds in self storage solutions across the country too because sch self storage facilities are actually pretty stable when it comes to returns, as long as they have steady occupancy rates at a particular self storage location.

ThomasMaloney April 9, 2018 1:16 am

The government has to sell what it can sell when it comes to these storage facilities in the city. Whatever it takes to make sure that there is a solution to keep the city profitable, especially when there are facilities that are underutilised!