L Highlighting the importance of the Lehigh Valley as a key national market Prologis to acquire Liberty Property Trust in $12.6 Billion transaction of industrial real estate ever assembled,” said Bill Han- kowsky , Liberty Property Trust Chairman & CEO. immediate cost and long-term revenue synergies.”

ISSUE HIGHLIGHTS Volume 31, Issue 22 Nov. 22 - Dec. 12, 2019

EHIGH VALLEY, PA — Liberty Property Trust , one of the larg- est industrial property own- ers in the Le- high Valley, has approved an agreement to be acquired by Prologis Inc. , a glob- al leader in commercial real estate, in a transaction valued at $12.6 billion. Prologis and Liberty Prop- erty Trust have announced that the two companies have entered into a definitive merger agreement, highlighting the importance of the Lehigh Val- ley as a key national market in commercial and industrial real estate investment. “The Prologis acquisition of Liberty is very significant for the Lehigh Valley,” said Don Cun- ningham , president & CEO of Lehigh Valley Economic EASTCHESTER, NY — Ashkenazy Acquisition Corp. has added Vernon Hills Shopping Center in Eastches- ter to its diversified portfolio in an acquisition orchestrated by Cushman & Wakefield . The private real estate invest- ment firm purchased the five- building Westchester County asset at a cost exceeding $125 Bill Hankowsky

Development Corporation (LVEDC) . “Liberty has long been the largest owner of indus- trial real estate in the region and Prologis has had a large pres- ence here as well. The combined companies will become an even more significant entity in our market. The purchase shows the strategic importance of the Lehigh Valley in the industrial and manufacturing sectors.” Prologis Chairman & CEO Hamid Moghadam said the company considers Lehigh Valley one of its target mar- kets, and this transaction will deepen Prologis’ presence there as well as other markets like Chicago, Houston, Central Pennsylvania, and Southern California. “Liberty’s logistics assets are highly complementary to our U.S. portfolio and this acqui- sition increases our holdings and growth potential in several key markets,” Moghadam said. “The strategic fit between the portfolios allows us to capture


Once the transaction goes into effect, the combined com- panies will own 59 industrial/ flex buildings in Lehigh Valley, encompassing 25.6 million s/f, which will account for about 21% of the total space in the market, according to George Lewis , LVEDC director of re- search & analysis. Liberty Property Trust, which has had a presence in the Lehigh Valley for 33 years, owns 37 buildings in the region, totaling 17.5 million s/f, or 14% of the region’s industrial mar- ket share, Lewis said. Prologis currently owns 22 buildings in Lehigh Valley encompassing 8.1 million s/f, or 6.5% of the regional mar- ket spare, according to Lewis, whose analysis was based on data from CoStar . “Liberty and Prologis rep- resent two of the finest teams of real estate professionals and two of the finest portfolios

“The joining of these two platforms at this moment, when industrial logistics has become so pivotal to the new economy, will further the in- dustry’s ability to support the nation’s supply chain and en- hance value creation for our combined shareholders,” Han- kowsky said. “It is a testament to Liberty’s outstanding teams of professionals, both present and past.” The acquisition includes 107 million s/f logistics operating portfolio, with an 87% overlap with key markets, according to Prologis. It also includes 5.1 million s/f of logistics development in progress, 4.9 million s/f of of- fice operating and development portfolio, and 1,684 acres of land for future logistics devel- opment with build-out potential of 19.7 million s/f.  Frank DiTommaso and Kyle Schmidt leading the assign- ment with Matt Lisk and Al Mirin of the commercial real estate services firm’s Stam- ford, CT, office. Additionally, John Alascio, Gideon Gil, Sridhar Vankayala, TJ Sul- livan and Maya Steinberger of Cushman & Wakefield’s Manhattan-based Equity, Debt & Structured Finance (EDSF) team represented Ashkenazy Acquisition Corp. in arrang- ing acquisition financing. The loan was provided by Peoples United Bank , as lead lender, with Amerant Bank, Iberia Bank and Westchester Bank as lending participants. “The asset is a flagship mixed-use center in one of the most affluent townships outside New York City,” Alascio said. “Ashkenazy Acquisition Corp.’s sponsorship and business plan resonated with the banking community. In turn, active bidding from the debt markets resulted in long-term balance sheet execution.” 


NewYork DealMaking



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Cushman &Wakefield orchestrates Vernon Hills Shopping Center acquisition totaling $125million

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Vernon Hills Shopping Center

Directory Shopping Centers featuring NY ICSC Deal Making ....5-20A Organization Events Calendar..............................24A Owners, Developers & Managers............... Section B Construction Management/Design Build..........5-12B Commercial Office Properties..................... Section C www.marej.com

able location and remarkable tenant demand – for more than 15 years, noted Cushman & Wakefield’s Andrew Merin . “This was a family-owned and operated asset since it was originally developed in the 1950s, and as such it can be considered a once in a lifetime acquisition.” Cushman &Wakefield’s East Rutherford, NJ based capital markets team represented the seller and procured the buyer in the Vernon Hills Shop- ping Center trade, with Me- rin, David Bernhaut, Gary Gabriel, Brian Whitmer,

million fromVernonHills Shop- ping Center LLC. The mixed-use property, totaling more than 380,000 s/f and located five miles from the White Plains CBD at 700White Plains Rd., features a mix of retail, medical and professional credit tenants serving a densely populated trade area. More than 450,000 people live within five miles of Vernon Hills Shop- ping Center; the average house- hold income within that same radius is nearly $144,000. “Ashkenazy Acquisition Corp. had been eying this investment property – with its irreplace-

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