A West Manchester Township industrial property leased by The Wolf Organization sold this month for $16.5 million, according to Jones Lang LaSalle’s Philadelphia Capital Markets Group.
Industrial Property Trust Inc., a Denver-based real estate investment trust, bought the 312,769-square-foot property at 515 N. Zarfoss Drive from Endurance Real Estate Group LLC and Thackeray Partners.
Endurance, a value-add buyer, bought the property in 2011 with a short-term leaseback in place, said John Plower, senior vice president for JLL Philadelphia. Since then, the company has added a new roof, fixed dock doors and painted the building.
Once that type of buyer adds value, it’s time to move on, he said.
Plower noted strong demand in the York County industrial market, which doesn’t often have product available for investors to buy.
“There is a supply-demand imbalance,” he said. “When properties become available, we are seeing a good amount of interest from capital sources. It’s all kinds of buyers … privately held, fund managers, privately traded REITs.”
York County, especially along Interstate 83 and Route 30, continues to be a shining star within the Central Pennsylvania market, Plower said, citing the high-quality labor force, rental rates and limited vacancy.
The vacancy rate is about 2.9 percent, according to JLL.
The close proximity to other major metropolitan areas with strong intermodal and port access also is a key factor, he said.
The Wolf Organization has a lease on the entire building through February 2021. Next to the building are 17 acres that could be used for expanding the facility, constructing a stand-alone building or additional trailer storage and loading.
Wolf is the largest distributor of kitchen and bath cabinetry in the U.S. and a leading provider of trim, railing, decking, siding and other building products.