KB Toys Portfolio

Size: 2.2 million sq. ft.
Property type: industrial
Location: Alabama, Arizona and New Jersey

Heritage acquired three strategically located distribution centers in a joint venture with equity partners Barrow Street Capital and Greenfield Partners in an off-market transaction that closed in September 2007. The state-of-the-art, value-add properties are located in Clinton, N.J. (730,000 sq. ft.); Glendale, Ariz. (620,000 sq. ft.); and Montgomery, Ala. (840,000 sq. ft.). KB Toys leased back the entire portfolio for six months. Thereafter, the company will remain in 480,000 square feet at the New Jersey building and 375,000 square feet at the Arizona property. The Alabama property will be vacated for full retenanting.