Tyco Healthcare Leases 636,000-SF Warehouse

OAKS, PA-Tyco Healthcare Group has signed a 10-year lease for 636,000 sf atValley Forge Distribution Center here in what represents the largestindustrial lease transaction in the Greater Philadelphia market in more than threeyears. The value of the lease is undisclosed.

On condition of anonymity, a broker familiar with industrial properties inthis area of Montgomery County tells GlobeSt.com “the aggregate value isundoubtedly in excess of $25 million.” The average asking rental rate forindustrial space here ranges between $4.35 per sf and $4.50 per sf, according toGlobeSt.com research.

The Tyco lease takes the 835,000-sf property, which is owned byPhiladelphia-based Berwind Property Group, to 76% occupancy. Approximately195,000 sf remain available for lease along with land for the additional development oftwo buildings of approximately 100,000 sf each.

Stephen M. Spaeder, BPG’s SVP, negotiated the lease. In addition, WilliamGoodwin, Leonard G. Redeyoff and Joseph McDermott of the Wayne, PA-basedoffice of CB Richard Ellis’s industrial brokerage team, represented BPG in thetransaction. Paul Torosian and Larry Maister of the Philadelphia office ofTrammell Crow Co. represented Tyco.

Tyco Healthcare is a major manufacturer of medical devices and supplies forthe professional healthcare delivery market and of private label health andhygiene products for retail. It is a division of Pembroke, Bermuda-basedTyco International and is expected to move into the new location on December 1this year.

It is consolidating its distribution operations within and outside thePhiladelphia region and will warehouse and distribute personal healthcareproducts, including diapers and other paper consumables, from this location.