Case Study :: Prudential (PREI) – Lehigh

Property: Prudential Real Estate Investors (PREI) 9755 Commerce Circle Lehigh Valley, Pennsylvania Assignment: – Structure a joint venture between PREI and Arcadia Properties to develop a 500,000 SF speculative warehouse in a 256 acre industrial park – Responsible for marketing and disposition of building

Challenges:
– Weak industrial user demand relative to supply (i.e. sustainability of value)
– Unproven industrial park (i.e. frontier location)

Conclusion:
– Arranged joint venture with PREI
– Completed extensive national marketing campaign
– Sold the asset to Advance Auto Parts for $23.5 million ($47 psf) for their East Coast distribution center