Prologis Flips Tastykake’s Philadelphia Headquarters

Prologis received a scrumptious offer at the Philadelphia Navy Yard that was too delicious to turn down.

Utah-based Bridge Investment Group, which recently became a subsidiary of Apollo Global Management, acquired the Tastykake headquarters at 4300 South 26th Street from San Francisco-based Prologis for $87 million, the Philadelphia Business Journal reported. The deal for the 346,000-square-foot property breaks down to $252 per square foot.

The property is fully occupied by Tastykake, a Philadelphia institution. The tenant still has nine years left on a 26-year lease.

JLL’s John Plower and Ryan Cottone represented the seller in the transaction.

The tenant arrived on the scene in 2009 after Liberty Property Trust built the property specifically to suit Tastykake’s needs for a bakery and large distribution center. Prologis became the owner in 2020 after a $13 billion merger with Liberty Property Trust.

Tastykake actually got its start on the other side of the city, headquarters in North Philadelphia for nearly a century after its 1914 founding. Upon the Navy Yard relocation, the company sold its former bakery on Hunting Park Avenue and its former corporate offices on Fox Street. The company was acquired by Flower Foods in 2011.

Prologis declined to comment beyond the fact that it put the building up for sale in September. Bridge Investment Group did not respond to a request for comment.

Last month, Coweta County commissioners narrowly approved the rezoning for a roughly $17 billion Project Sail data center campus backed by Prologis, converting 829 acres southwest of Atlanta from rural conservation to industrial use. The project will include nine buildings totaling up to 4.3 million square feet.

Meanwhile, Apollo completed its acquisition of Bridge Investment Group in September, months after agreeing to acquire the firm for $1.5 billion. The deal helped double Apollo’s real estate assets under management, pushing the number past $110 billion.

— Holden Walter-Warner