Keystone Prop (NYSE:KTR)
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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/