POTTSTOWN PA – A private investor in New York has purchased the industrial use properties at 207 and 255 South St. in the borough, which will continue to be occupied under a long-term lease by an affiliate of The Schwan Food Company, according to a Thursday (Aug. 24, 2017) news release from a real estate broker involved in the deal.
Toronto, Canada-based Avison Young, a commercial real estate services firm, said its Capital Markets Group represented the seller, Pottstown Redevelopment Group LP, in the transaction. Neither the selling price nor the name of the buyer were disclosed.
The lease tenant, Avison Young said, is SFC Global Supply Chain Inc., a Schwan manufacturing unit. Schwan, a multibillion-dollar private company, “makes and markets iconic food brands” that include Pottstown’s historic Mrs. Smith’s pies, as well as Edwards desserts; Red Baron, Mama Rosa’s, Freschetta, Tony’s, Big Daddy’s, and Villa Prima pizzas; and Pagoda and Minh oriental foods.
Schwan utilizes the facility as its packaging headquarters, making tinfoil pie and pizza plates, as well as plastic packaging, Avison Young indicated.
The two properties contain a total of 124,585 square feet of space designated for warehouse and light manufacturing use, respectively, and carried a combined assessed value of more than $1.6 million, according to Montgomery County’s property records database. Pottstown Redevelopment Group is a limited partnership with its mailing address in Tamiment PA.
“With Pottstown’s industrial market containing 112 buildings, with a current vacancy rate of only 8 percent, the stability of Schwan’s long-term lease will help to revitalize the industrial market in this area,” the release said. “Pottstown’s strong history in the iron and steel industries make this the ideal location for Schwan,” it added.
The purchase represented the New York investor’s “first acquisition in Pennsylvania,” according to the broker.
Photo from Avison Young