Brennan Investment Group Invests in Lehigh Valley Industrial Space
By Colin McEvoy on June 8, 2020
In another sign that economic development activity has continued at a strong pace in Lehigh Valley during the coronavirus pandemic, the Brennan Investment Group recently announced the acquisition of a three-building industrial portfolio in the region.
Brennan, a private real estate investment firm from Chicago, has purchased three buildings totaling 380,274 square-feet in Hanover Township, Lehigh County, not far from the Lehigh Valley Industrial Airport (LVIA).
“Brennan is actively acquiring well-located, functional industrial product in strong distribution markets across the country,” says Chris Massey, Managing Principal at Brennan Investment Group. “The Lehigh Valley has a multi-year history of strong growth owing to its unique locational advantages with access to the major markets on the east coast. We view this purchase as the first of many to come.”
The sale demonstrates the desire for companies to invest in the Lehigh Valley even during these unprecedented times, according to officials from CBRE National Partners, The Magellan Group, and Drake Real Estate Partners, which jointly arranged the sale.
“Executing a sale like this amidst the current market environment is a testament to the strength of the Lehigh Valley market, the continued resilience of the industrial sector as a whole, and the tenacity of all the teams involved, said Jonathan Garonce, Partner at Drake Real Estate Partners.
Don Cunningham, President & CEO of the Lehigh Valley Economic Development Corporation, has previously noted that economic development has continued during the COVID-19 crisis, with LVEDC working on projects and expansions that had been in the pipeline before the pandemic, as well as fielding inquiries about future potential projects.
“Interest remains strong in the Lehigh Valley, particularly in the industrial sector,” Cunningham said. “Despite this unprecedented public health crisis, companies and site selectors know the fundamentals of the Lehigh Valley have not changed and are even more important.”
The buildings are located at 100, 202-208 and 212 Cascade Drive, all of which are fully leased out to five tenants, according to the company. They mark Brennan’s first purchases in Lehigh Valley, though company officials said they had been eyeing the market for some time.
The company said Lehigh Valley’s location was appealing due to its central Northeast location, transportation infrastructure, and its access to New York and Philadelphia, as well as its proximity to such assets as LVIA and the new $335 millon FedEx Ground hub.
“The I-78/I-81 Industrial Corridor has strong fundamentals, with 1.6 million square feet of positive net absorption year-to-date and an occupancy rate of 94%,” said Massey. “We are excited to add this investment to our Northeast portfolio.”
Brennan acquires, develops and operates industrial facilities throughout the United States. Its purchase in Lehigh Valley brings its Northeast portfolio to nearly 5 million square feet in 14 submarkets, Massey said.
“This acquisition demonstrates Brennan’s capability to acquire assets below replacement cost in strong infill locations while supporting our objective of delivering strong risk adjusted returns to our investors,” said Michael Brennan, Chairman and Managing Principal at Brennan Investment Group.
Michael Hines, Vice Chairman of CBRE, added: “Even during these unprecedented times, we are seeing a demand for functional infill space and no or minimal price adjustment. The sale of the Lehigh Valley Light Industrial Portfolio further proves the desire to own in the Lehigh Valley.”
June 2020 Issue of LVStartup Has Been Released
The June 2020 issue of LVstartup, a monthly e-newsletter about entrepreneurs and startups in the Lehigh Valley, has been released. Click here to see the new issue, and [...]Continue to Next Page