16 — September 2026 — Pennsylvania — M id A tlantic Real Estate Journal
www.marej.com
P ennsylvania Company to take over 1.5 million s/f in Upper Macungie Governor Shapiro secures $1.2B investment from Chobani
CBRE arranges sale of 55,000 s/f office building
PHILADELPHIA, PA — CBRE has arranged the sale of 5 Capital Dr., a 55,000 s/f class A office building in Har - risburg. An affiliate of Kest & York purchased the prop- erty from FIVE CAPITAL ASSOCIATES, LLC for an undisclosed amount, marking the investor’s first acquisition in the Harrisburg market. CBRE Investment Proper- ties’ Steve Marzullo and Adam Silverman , along with Jeremy Shyk and David Sickler represented the seller in the transaction. Joanne Willams of CBRE’s Debt and Structured Finance team se- cured the financing on behalf of the buyer. Shyk will continue to oversee leasing of the property. “5 Capital Dr. has long been a standout asset in our re- gion, making this an especially meaningful transaction for our team, which also handled the property’s previous sale,” said Marzullo. “This transaction is a great indicator of the contin- ued demand for high-quality, suburban office space in Cen - tral Pennsylvania, and we are thrilled to have helped bring a new investor into the fold.” Built in 2008, 5 Capital Dr. is located near Interstates 81 and 83 and PA Rtes. 22 and 322, providing convenient access to downtown Harrisburg and the Camp Hill Business Dis- trict. The four-story property features several amenities, including an energy-efficient geothermal HVAC system, abundant natural lighting, a fitness center and outdoor balconies, and is leased to a diverse mix of established regional and national tenants. “Kest & York is excited to add 5 Capital Dr. to its growing office portfolio as it expands across North American mar- kets,” said Shyk. “The property represents a reimagined class A asset that thrives in today’s market with institutional qual- ity space, energy efficiency, pre - mium location, and distinctive outdoor access, including onsite scenic trails and Paxton Creek views. With ideal suites ranging from 1,000 to 14,000 s/f, great window-to-floor ratios and eager new ownership, the property of- fers a unique value proposition that modern tenants demand.” In other news, CBRE has arranged an $85 million loan for Mi-Place at Downingtown, a newly developed 318-unit multifamily community lo- cated at 800 Horseshoe Pike in Downingtown. Matthew Klauer and Cassandra Russell of CBRE
CHNECKSVILLE, PA — Pennsylvania Gov- ernor Josh Shapiro, Department of Agriculture (PDA) Secretary Russell Redding, Department of Community and Economic Development (DCED) Secre- tary Rick Siger, and Depart- ment of Revenue Secretary Pat Browne announced the Commonwealth has secured a historic $1.2 billion investment from Chobani to establish its first dairy product manufactur - ing operation in Pennsylvania. This major project — the larg- est ever private investment in Pennsylvania’s agriculture industry — will create 900 full-time jobs over the next five years in the Lehigh Valley and greatly expand markets and op- portunities for more than 4,000 dairy farmers in Pennsylvania. Chobani will assume op- erations of Keurig Dr Pepper’s (KDP) manufacturing facility, equipment, and related infra- structure, where Chobani plans to manufacture innovative food products beyond yogurt. The 1.5 million s/f facility, located at 7356 Industrial Blvd. in Upper Macungie Twp., will accelerate Chobani’s ability to innovate and produce the next generation of better, more wholesome foods while creating new opportunities for PA work- ers, farmers, and suppliers. When fully operational, the S
market access opportunities. This historic project brings expanded processing capacity and increased demand for PA- produced milk, strengthens the Commonwealth’s dairy supply chain, and keeps more of the economic value of Pennsylvania milk within the state. “We welcome Chobani and its $1.2 billion investment in Pennsylvania to the portfolio of internationally known com- panies producing brand-name products here in one of Amer- ica’s top manufacturing mar- kets,” said Don Cunningham , president & CEO of the Lehigh Valley Economic Develop- ment Corp. “We are grateful to Chobani for selecting the Lehigh Valley and to Gov. Josh Shapiro for this historic investment in Pennsylvania ag- riculture. These wins don’t hap- pen by accident. Once again, the region’s economic success has been supercharged by the Shapiro Administration’s hard work, focus, and investment, and the coordinated effort of so many in the Lehigh Valley.” Key local partners sup- porting the project include the Lehigh County Author- ity, Upper Macungie Twp., Lower Macungie Twp., South Whitehall Twp., and the City of Allentown. Production under Cho- bani is expected to begin in 2027. MAREJ increased the property’s net operating income by 41% and strengthened the asset’s ap- peal to net lease investors. Following the restructuring, Colliers executed a targeted marketing campaign that generated strong investor interest and resulted in the $12,725,000 sale, represent- ing $106.28 per square foot at a 7.99% capitalization rate. “This transaction demon- strates the value of combin- ing deep market knowledge with a strategic approach to real estate advisory,” said Gorodesky. “By identifying an opportunity to improve the lease structure and reposition 2501 Grant Avenue as a long- term net-leased investment, we were able to enhance the asset’s marketability, expand the buyer pool and deliver a successful outcome for our client.” MAREJ
5 Capital Dr., Philadelphia
7356 Industrial Blvd.
facility is expected to process more than three billion pounds of PA milk annually — equiva- lent to 30% of all milk currently produced in the Commonwealth — the largest increase in de- mand for PA dairy in the state’s history. The project will create a significant new market for the Commonwealth’s family dairy farms, helping them grow and strengthen their businesses for generations to come. “Pennsylvania is home to one of the highest number of family- owned farms in the country. When we walked into this fac- tory, we knew it was a great fit for what we want to build for the future,” said Hamdi Ulukaya , founder & CEO of Chobani. This investment by Chobani is a major step forward for Penn- sylvania’s dairy industry and, most importantly, for the farm families who are its foundation. Pennsylvania has the second highest number of dairy farms in the nation – and agriculture is a key pillar of Governor Shapiro’s economic development plan. For years, the Commonwealth’s dairy farm families have been eager for more processing and
Mi-Place at Downingtown
Capital Markets’ Debt & Structured Finance team in Philadelphia arranged the financing on behalf of the bor - rower, Fernmoor . The financ - ing was provided by B arings . “Barings recognized the qual- ity of both the sponsorship and the asset,” said Klauer. “Mi- Place at Downingtown stands out within the Philadelphia suburbs due to its scale, dif- ferentiated product mix and exceptional location in one of the region’s strongest subur- ban growth corridors.” Located 30 miles west of Philadelphia, Mi-Place at Downingtown offers direct access to U.S. Rte. 30, the PA Tpke. and SEPTA Regional Rail service. The property consists of 200 apartment units and 118 townhomes and is the latest addition to Fernmoor’s portfolio of Mi-Place rental communities throughout the Mid-Atlantic region. “Securing this financing is an important milestone for the continued success of Mi-Place at Downingtown,” said Jeffrey Fernbach , president of Fern- moor. “The property has deliv- ered strong leasing momentum and reinforces our belief that there is significant demand for high-quality rental housing that combines modern ameni- ties, larger living spaces and convenient suburban access to major employment centers.” The property features one-, two- and three-bedroom floor - plans and several unit and community amenities, includ- ing a resort-style pool, club- house, fitness center, pickle - ball courts, dog park, electric vehicle charging stations and smart-home technology. “Mi-Place at Downingtown is a compelling opportunity backed by an experienced sponsor and a high-quality asset in a desirable subur- ban market,” said Jona- than Neff , director with Barings. MAREJ
Colliers completes $12.725 Million sale of industrial property in Northeast Philadelphia
PHILADELPHIA, PA — Colliers announced the $12,725,000 sale of 2501 Grant Ave., a 119,728 s/f industrial facility situated on 5.96 acres in Northeast Philadelphia. The property was acquired by 2361-2371 Welsh Acquisitions LLC. Colliers vice chair Rich Gorodesky, SIOR , and vice president Adam Goro- desky, CCIM , represented the seller, Grant Equities LLC , in the disposition. 2501 Grant Ave. is occupied by AAA Distributors, LLC, a Philadelphia-founded distribu- tor of kitchen, bath, doors and flooring products. The facility serves as AAA Distributors’ showroom and primary ware- housing and distribution cen- ter, supporting the company’s retail and logistics operations. Located in Northeast Philadel- phia with immediate access to Route 1 and I-95, the property
2501 Grant Ave.
provided investors with a sta- ble, long-term income opportu- nity backed by an established operating company. Prior to launching the sale process, Colliers worked with ownership to unlock addi- tional value by restructuring the existing lease. The team identified that the property’s in-place lease was limiting its market potential and negoti- ated a new 10-year lease with AAA Distributors with $8.50 psf in starting rent, 3.5% an- nual escalations and a net lease structure with minimal landlord obligations. The lease repositioning
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