Purchased for Price
Sold for Price
About 515 Zarfoss Drive
In late 2011 Endurance (“EREG”) in an off-market a acquisition acquired 515 Zarfoss Drive in York, PA, a bulk warehouse/distribution building totaling 312,769 square feet for $8,075,000 or $25.80 PSF. Built in 1985, and expanded in 1988, the Property featured all the amenities required by contemporary distribution needs including ceiling heights up to 31’ clear, 29 loading doors, a wet sprinkler system, and approximately 7,400 SF of office space. The Property benefits from excellent access as well as easy linkage to the tri-city area of Harrisburg, Carlisle, and York with the region’s most important highway systems including I-83, I-81, I-78, I-76 (Pennsylvania Turnpike), Route 222 and Route 30. The Property is located within a day’s drive for more than 100 million people and six of the eight largest US markets, as well as 50% of Canadian consumers within an 8-hour truck commute.
At acquisition the Property was fully occupied by Syncreon.US, Inc. (providing logistical support and light assembly services to Harley Davidson) on a short-term lease at a below market rent signed during the trough of the market. Syncreon ended up needing to expand and relocate for closer proximity to Harley. Synreon’s departure provided an opportunity to implement a planned base building renovation and obtain a new user at inflated market rents. Building updates included exterior painting, electrical, dock, and slab repairs, extensions of the truck court dolly pads to accommodate 53’ trailers, and a full roof coating. As a result of the base building program, enhanced curb-appeal, and a broadly targeted leasing effort, EREG successfully released the entire property to The Wolf Organization, LLC, a supplier of kitchen cabinets and building products, for use as a distribution facility.
Through a full marketing effort, EREG closed on the sale of the property in November 2015 to an institutional investor group for $16,500,000 ($52.75 PSF), realizing a 30.1% property-level IRR and a 2.89 equity multiple.