9747 Commerce Circle

In August of 2010, Endurance Real Estate Group acquired 9747 Commerce Circle for $15,900,000 or $41.33 PSF on an off-market basis. The 384,695 SF warehouse/distribution building, located in Kutztown, Pennsylvania in the core of the Lehigh Valley industrial market, was fully-leased at the time of sale. This highly functional building was constructed in 2007 and features all of the modern amenities of a new distribution building including 32’ ceiling heights, up to 40 loading doors, and an ESFR sprinkler system.

At the time of the acquisition, the building was 55% leased to TEVA, the global pharmaceutical company with certain base-building improvements remaining to be completed. During its holding period, Endurance successfully stabilized the property through the signing of a 140,000 SF lease in April of 2012 with Hearth and Home Technologies, the world’s leading producer and installer of hearth products. As part of the lease transaction, Endurance made several improvements to the building including the construction of 5,000 SF of office space and the addition of ten new loading doors. Through a full marketing effort, Endurance closed on the sale of the property in December 2012 to an institutional investor group for $21,300,000 ($55.37 PSF), (subject to existing financing equal to approximately 45% of the purchase price at an above market interest rate) realizing a 29.21% property-level IRR and a 1.77 equity multiple.