Ashley Furniture Purchases 1,200,000 sq. ft. Building In Leesport, PA

Furniture World Magazine

In the largest industrial transaction in the Commonwealth in 2004, Ashley Furniture, headquartered in Arcadia, WI, purchased the former Ames Merchandising Corporation’s one-story facility situated on 180 acres for $26,750,000.00. The property was sold by Ames in late December pursuant to the Bankruptcy Court of the Southern District of New York with Kimco Funding LLC as the major creditor. Ashley Furniture, founded in 1945, has become the third largest home furniture manufacturing company in the country. Ashley plans to use the Leesport property as both a manufacturing and distribution center hub. After an exhaustive search for a class A distribution center encompassing all of New Jersey and Upstate Pennsylvania, the Leesport property became the ideal choice. Approximately 500 new jobs will be created as a result of this major sale. Ames was a Connecticut-based discount chain that at one time operated 330 stores located in the mid-Atlantic states. After filing for Chapter 11 bankruptcy protection, the decision to liquidate the business was made in 2002. The modern, 1,200,000 square foot building includes 30’ clear ceiling heights throughout; 146 loading docks; all municipal services and parking for 1000 trailers. Binswanger/CBB and the Binswanger/Klatskin alliance, formed in February 2001, co-brokered the transaction on behalf of Ashley. Binswanger, headquartered in Philadelphia, is an international full-service real estate organization with over 160 offices worldwide. Klatskin, headquartered in Teterboro, NJ, is New Jersey’s foremost industrial and commercial real estate company.