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Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to offer for sale the fee-simple interest in a TireHub distribution facility (the “Property” or “Asset”) located 65 miles northwest of Philadelphia in Allentown, Pennsylvania. TireHub was established in 2018 as part of a 50/50 joint venture between the two top tire manufacturers, Bridgestone and Goodyear, to create a nationwide distribution network to meet the ‘real-time’ demand customers required.
Tirehub – Allentown is located within 250 miles of approximately 62 million people and a two-hour drive of New York City, Boston, Philadelphia, and Baltimore, making the asset vital to reaching the Bridgestone and Goodyear tire dealerships and distribution networks.
This offering presents the opportunity to acquire a mission-critical distribution facility backed by the top two tire manufacturers in the world in a high growth Lehigh Valley industrial market.
MISSION CRITICAL DISTRIBUTION FACILITY IN HIGH GROWTH INDUSTRIAL MARKET
- Allentown is located in the Lehigh Valley metropolitan area and home to approximately 126,000 residents, making it the largest city in the Lehigh Valley and third largest in the State of Pennsylvania
- Over the last five years the Lehigh Valley industrial market has seen a 5.9% annual market rent growth and 4% annual market rent growth over the last 10 years with limited development opportunities available
REDEFINING MARKET LEADING TIRE DISTRIBUTION TENANCY
- In 2018, Bridgestone and Goodyear established TireHub to create an immediate nationwide distribution network that the top two tire manufacturers in the world did not previously have established
- TireHub has grown to have 70 distribution centers, more than 35,000 delivery locations and over 1,400 employees nationwide
NET LEASE STRUCTURE WITH LONG-TERM SITE COMMITMENT
- TireHub or an affiliated Goodyear company has occupied the space for over 30 years and recently executed an extremely rare 10-year lease extension, demonstrating long-term commitment to the site and tremendous importance of the distribution facility to the larger Goodyear and Bridgestone business model
- TireHub is operating on a double-net lease structure with minimal landlord responsibilities of roof and structure