Keystone Property Trust Announces Acquisition of International Corporate Park in Miami, Florida
November 12 2003 - 8:31AM
PR Newswire (US)
Keystone Property Trust Announces Acquisition of International
Corporate Park in Miami, Florida WEST CONSHOHOCKEN, Pa., Nov. 12
/PRNewswire-FirstCall/ -- Keystone Property Trust announced today
that it acquired a 1.7-million- square-foot industrial portfolio in
Miami, FL known as International Corporate Park ("ICP") for $114.4
million excluding closing costs and including $67.6 million of
assumed debt. The portfolio is comprised of 13 modern
warehouse/distribution buildings that were built between 1996 and
2002 and is 97% leased. Tenants within the portfolio include many
of the leaders in the movement of freight such as Federal Express,
Airborne Express, Exel, Bax Global, Expeditors, Eagle Global, and
Air Express International. The average lease term for the portfolio
is approximately 4.0 years, and the average tenant size is 70,000
square feet. The balance of this 300-acre master planned industrial
park is comprised primarily of owner-occupied facilities including
buildings for MCI, USPS and Carmax. The buildings are tilt-up
concrete construction and feature 180' rear load truck courts,
clear heights ranging from 24-27 feet and on average 1 dock door
per 3,500 square feet of building area. The average building size
is 133,000 square feet, and only 3 buildings are less than 100,000
square feet. The typical building depth is between 160' and 200',
as all of the buildings have been designed for multi-tenant use.
The Company believes ICP is the highest quality industrial park in
Miami, as it was designed with lighter building coverage ratios,
landscaped boulevards, wider truck turnaround courts and more dock
doors per square foot than comparable properties. Keystone has
certain development rights on additional ground within ICP, which
could provide up to approximately 340,000 square feet of space.
Jeffrey E. Kelter, President and CEO of Keystone, commenting on the
acquisition, stated, "ICP is a tremendous addition to our
portfolio, and the properties are among the highest quality
buildings that we own. Consistent with our overriding investment
philosophy and market niche, ICP represents the most modern bulk
warehouse inventory in this market. These buildings are tailored to
the most sophisticated users and are distinct from the smaller,
older commodity product that comprises the majority of this market.
We believe that ICP represents approximately 25% of the new, larger
bulk warehouse/distribution universe within the Airport West
submarket, and as such is a perfect complement to our focus on
bigger footprint, high-cube distribution centers." Regarding the
Company's expansion into a new geographic market, Mr. Kelter added,
"This transaction establishes a foundation and major presence for
the Company in one of the most dynamic industrial markets in the
United States. Keystone's acquisition of ICP represents an entry
into a new geographic market, but NOT a new market by any other
definition or a departure from our core investment and operating
philosophy. Miami is a market we have explored for years and the
market characteristics and fundamentals are very similar to those
we know well in our existing core markets -- a major distribution
hub driven by international and domestic trade with significant
constraints to new supply. Further, we believe the on-going
relationship we have established with The Easton Group will provide
us with a leg-up in sourcing additional investment opportunities in
this vibrant market." ICP is located in the Airport West submarket
of the Miami-Dade County industrial corridor within 2 miles of the
Miami International Airport and 5 miles from the Port of Miami and
downtown. The Miami-Dade County industrial market contains
approximately 190 million square feet of space, with a current
vacancy rate of approximately 8.0%. The Airport West submarket
contains approximately 61 million square feet, and the current
vacancy rate is approximately 9.8%, with much of the overall
inventory and vacancy being confined to older, smaller inefficient
buildings. Recognized as the "Gateway to Latin America," Miami is a
center for global trade and has become one of the most dynamic
industrial markets in the nation driven largely by the presence of
Miami International Airport ("MIA"). MIA is ranked #1 in the United
States for International Freight and ranked #3 in the United States
for Total Freight. Miami is served by more airlines than any other
airport in the Western Hemisphere and is the fastest growing
metropolitan area among the 10 largest in the United States. We
have posted additional information on Keystone's acquisition of
International Corporate Park in the form of a brief slide
presentation on the Company's website in the "Presentations"
section under "Investor Relations." Keystone Property Trust, with
headquarters in West Conshohocken, Pennsylvania, is a fully
integrated real estate investment trust with a current portfolio of
140 properties, including properties under development, aggregating
almost 33 million square feet in the Eastern half of the United
States. For more information, contact Aleathia M. Hoster at (212)
527-9900, send email to or visit the Company website at
http://www.keystoneproperty.com/. This press release may contain
statements which constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding the intent, belief or current
expectations of the Company, its trustees, or its officers with
respect to the future operating performance of the Company and the
result and the effect of legal proceedings. Investors are cautioned
that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, and that
actual results may differ materially from those in the forward
looking statements as a result of various factors. Important
factors that could cause such differences are described in the
Company's periodic filings with the Securities and Exchange
Commission, including the Company's Form 10-K and quarterly reports
on Form 10-Q. DATASOURCE: Keystone Property Trust CONTACT: Aleathia
M. Hoster of Keystone Property Trust, +1-212-527-9900, or MEDIA:
Michael Beckerman, +1-908-781-6420, , for Keystone Property Trust
Web site: http://www.keystoneproperty.com/
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