Tastykake facility in the Navy Yard sells for $87 million

The Tastykake baking campus at the Navy Yard just changed hands for $87 million. The 345,500-square-foot facility at 4300 South 26th Street, the place where every Butterscotch Krimpet and Peanut Butter Kandy Kake on the East Coast gets made, was sold by Prologis to a new institutional buyer.

Before anyone panics, Tasty Baking Co. isn’t going anywhere. They’re still the tenant under a long-term lease with roughly a decade left on the agreement. This is a landlord swap, not a shutdown.

Tastykake facility in the Navy Yard sells for $87 million

Tastykake's headquarters in South Philadelphia has been sold for $87 million about seven months after it was put on the market. https://t.co/zG8RYgGKCN

— Philadelphia Business Journal (@PHLBizJournal) May 11, 2026

The building was finished in 2009 as a build-to-suit project created specifically for Tastykake’s operations. It combines production lines, packing areas, and warehouse space into one cross-dock manufacturing and distribution complex.

Prologis picked it up through their merger with Liberty Property Trust and put it on the market last year. The $87 million price tag caught attention from institutional investors who love fully leased, purpose-built food facilities because they generate steady cash flow without the headaches of finding tenants.

For South Philadelphia, this is good news wrapped in a real estate transaction. Tastykake has been a Philadelphia institution for over a century. The brand staying put at the Navy Yard while the building ownership shifts to financial players means the jobs stay, the production stays, and the Krimpets keep rolling off the line. The worst-case scenario would have been a sale that led to a relocation or a shutdown. That’s not what this is.

The $87 million number also says something about the industrial real estate market in Philadelphia. Well-located manufacturing buildings with modern capabilities and strong logistics access are in high demand.

The Navy Yard location gives Tastykake easy access to I-95, the port, and distribution networks up and down the East Coast. That kind of infrastructure is exactly what institutional investors are chasing right now.

Tastykake isn’t leaving. The factory keeps running. South Philly keeps its snack cakes. The only thing that changed is who cashes the rent check. As long as the Butterscotch Krimpets keep showing up at Wawa, everything is fine.

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