This Week's Philadelphia Deal Sheet
A New Jersey investment firm that entered the Philadelphia market last year didn't venture very far for its second deal in the area.
Norden Realty Investments purchased 15 Kings Grant Drive, a two-story, 57K SF office building in Bala Cynwyd, from Keystone Development + Investment for $20M in February, the Philadelphia Business Journal reports. Norden had purchased 225 City Ave., a 75K SF office and retail building steps away from 15 Kings Grant, from Keystone for $19M last year.
Despite its smaller size, 15 Kings Grant was more valuable than 225 City Ave. because it is entirely leased to auto parts manufacturer Cardone Industries through 2033, PBJ reports. Despite signing a 15-year lease in 2018, Cardone never occupied the building and has been trying to sublease it since 2020.
CONSTRUCTION
Buccini/Pollin Group announced a May 4 grand opening for its newly completed Crosby Hill apartment building at 517 Shipley St. in Downtown Wilmington. The 11-story, 203-unit development, which replaced a parking lot, will contain a 124-spot underground parking garage for residents and a penthouse clubroom on the top floor.
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The Port of Philadelphia received a zoning permit for construction of a 277K SF distribution center at 3060 South 61st St. in Southwest Philadelphia, PBJ reports. PhilaPort has owned the 15-acre site, which sits across the Schuylkill River from Hilco Redevelopment Partners' Bellwether District, since 2008 and has used it as a surface parking lot.
DH Property Holdings would develop the warehouse on behalf of PhilaPort, which has been in expansion mode for the past year as importers have sought alternatives to the busiest ports in the U.S.
SALES
A joint venture of Atlanta-based Portman Industrial and an affiliate of local firm D2 Organization purchased and assembled a 49-acre site for the development of a 588K SF warehouse in Carney's Point, New Jersey.
The D2 affiliate assembled four lots just off Exit 4 of Interstate 295 in South Jersey from four owners before bringing on Portman as a joint venture partner to lead construction and leasing efforts. The team has already secured the necessary permits and entitlements, so development can begin immediately and is projected to complete early next year.
PEOPLE
Local Marcus & Millichap affiliate Institutional Property Advisors expanded with the hiring of retail investment broker John “J.P.” Colussi from MSC Retail. Colussi will hold the position of senior director and partner with IPA Executive Director Brad Nathanson to assist institutional and private equity owners in selling their retail properties.
PARTNERSHIPS
King of Prussia-based multifamily giant Morgan Properties has partnered with financial services platform Jetty to launch a security deposit alternative called Jetty Deposit at over 300 of its properties. Security deposit alternatives like Jetty Deposit give new tenants the choice of paying additional monthly fees instead of an upfront sum.
LEASING
Cheerleading coaching business Royal Revolution All-Stars leased an 8K SF former catering hall at 109 North Black Horse Pike in Blackwood, a census-designated place in South Jersey's Gloucester Township. Vantage Commercial Vice President Ken Richardson and adviser Vince Ciroli advised both Royal Revolution and the property owner, which converted the former Palace Catering building into a flex space.
The landlord's identity has been redacted from county property records under the terms of Daniel's Law, a New Jersey law that allows public servants to have their identity removed from certain public documents.
