Brennan Investment Group, LLC, a private real estate investment firm that acquires, develops, and operates industrial facilities, announced its purchase, and simultaneous leaseback to Markel Corporation (“Markel”) of a 168,000 square foot facility located at 435 School Lane in Plymouth Township, PA. Markel is a leading provider of high performance fluoropolymer solutions to market-leading customers in the automotive, communications, environmental, and industrial markets. The building serves as the company’s headquarters and sole manufacturing facility.
Kevin Brennan, Vice President of Acquisitions at Brennan Investment Group stated, “The overall Philadelphia industrial market contains nearly 445 million square feet of inventory and continues to recover, as evidenced by strong absorption numbers and a declining vacancy rate of 7.2%, which is down 30 basis points from the first quarter of 2015.”
“The acquisition of the Markel facility was funded through our $300,000,000 net leased joint venture with one of Arch Street Capital Advisors’ institutional clients,” said Robert Vanecko, Brennan Investment Group’s Managing Principal and the head of the firm’s single-tenant, net lease division. “We are excited to add this property to our growing portfolio.”
The key criteria of Brennan’s net lease joint venture are (i) location in the top 100 U.S. markets, (ii) remaining lease term of at least 13 years, (iii) non-investment grade credits will be considered, (iv) significant facility investment by the tenant, and (v) all industrial facility types, including manufacturing, assembly, R&D and distribution.