14B — June 18 - July 22, 2021 — New Jersey/Pennsylvania — M id A tlantic Real Estate Journal


N ew J ersey /P ennsylvania

Nathan Coe, Brett Hatcher and Gabriel Coe market property Marcus & Millichap arranges the sale of a 38,550 s/f self-storage facility in Brodheadsville

RODHEADSVILLE, PA — Marcus & Mil- lichap announced the sale of Brodheadsville Self Stor- age, a 38,550 s/f self-storage fa- cility located in Brodheadsville, according to Grant Fitzger- ald , regional manager of the firm’s Columbus office. Nathan Coe, Brett R. Hatcher and Gabriel Coe , in- vestment specialists in Marcus & Millichap’s Columbus office, had the listing to market the property on behalf of the seller, a limited liability company, and they were also able to secure the buyer in the transaction. Sean Beuche , Pennsylvania Regional Manager and Broker of Record license #RB062197C, assisted in closing this transac- tion. “I am very excited for both the sellers and the buyers on Brodheadsville Self Stor- age,” said Nathan Coe, the lead agent involved on the transaction. “We were able to B And no one wants COVID, so people are moving away from places that are mass-transit oriented. None of that is good for New Jersey.” • “Roughly 35% of office workers across the country have already returned to the office. But in New Jersey, it’s only half that. And in Manhat- tan, it’s less than one third. There is now more available office space in Manhattan than in downtown Los Angeles, Atlanta, Dallas and Miami combined. The question in my mind isn’t whether the New Jersey/New York business model will survive – with these demographic shifts it just can’t. But that hardly means New Jersey is dead. It just means we’re entering a new chapter of industrial develop- ment.” • “Before 1945, you would bring raw materials, financial capacity and technology into a set location, do the intermedi- ate and the finished steps all in the same place, and export the end product. Then the global order came along. The whole world opened up, and we had countries around the world producing at different price points and different levels of efficiency. The result was the multi-global, multi-step supply On the Evolution of Manufacturing

through 2030. The buyers plan on converting the vacant second floor space into apartments for young professionals in the Downtown Scranton area. Craig Dunkle of the Dunkle Group of Marcus & Millic- hap said “Both the buyer and seller achieved an attractive capitalization rate of return on the disposition and acquisi- tion of the asset. The seller, a Philadelphia based develop- ment company achieved the simplification of their portfolio resulting from the disposition of an asset outside of their core market. The out of mar- ket buyer who was looking to penetrate the Pennsylvania market succeeded in acquiring a stabilized cash-flowing asset while capitalizing on the upside through the conversion of the vacant space to multi-family apartments. We are ecstatic to once again create significant value for our clients in a sec- ondary market.” MAREJ they are trying to push people in this direction. So, we are probably going to see some tweaks courtesy of Treasury in order to allow states like New Jersey to play across the coun- try in ways you really haven’t been able to before.” MAREJ

430 Penn Ave.

Brodheadsville Self Storage

& Millichap’s Philadelphia of- fice, had the listing to market the property on behalf of the seller, a Philadelphia-based developer. The buyer, a pri- vate investor based out of the Brooklyn area, was secured and represented by Dunkle and Day, The subject property is locat- ed at 430 Penn Ave. in Scran- ton. The building was 28% occu- pied at the time of the sale, with the PA Board of Probation and Parole being the single tenant. The state recently signed a ten- year lease extension running sorry – you should really not expect it to be an appreciable amount of your power genera- tion outcomes.” • “What we are seeing is a change in how the federal gov- ernment is regulating finance in the power sector because

achieve the listed and targeted sale price and close in a short amount of time. It was one of the smoothest processes all around, and both the buyer and the seller were so great to work with. The buyer is adding a very well-run facility with a lot of upside to his portfolio.” Brodheadsville Self Storage is located in Brodheadsville, Pennsylvania, about 30 miles north of Allentown, Pennsylva- nia. This facility features 269 non-climate-controlled units totaling 38,550 net rentable s/f. They also offer 24 parking • “In a big global manu - facturing model, you get big assembly lines because you’re producing for the entire planet. That’s probably not what we’re going to be doing for long. The consumer scale just won’t be there. In many cases, smaller is going to be better. If the fu- ture is one of small runs, closer to consumers, you don’t need a massive footprint. chain we have all become used to today.” • “Tome, a lot of this screams New Jersey. You don’t have the space for huge assembly lines and you can’t support the economies of scale in mass production. But you are at the heart of the country’s largest and densest urban conglom- eration, so you’re going to need a whole lot of local production. You have rock solid supplies, your infrastructure is already in place and warehouses can be easily converted to match changing production. Supply chains just don’t get shorter than made in New Jersey.” • “Commercial real estate as a unit is going to be fine, I think, but there’s going to be a lot of pain. Offices will turn into warehouses, and ware- houses will turn into manufac- turing. Remember, more stuff produced closer to consumers means a different manufactur- ing model. New Jersey will end up in a much better place with

spaces for rent. The facility was built in 2003 and sits on 4.41 acres of land. In a separate transaction Marcus &Millichap announced the sale of 430 Penn Ave., a 38,054 s/f office property lo- cated in Scranton, according to Beuche. The asset sold for $2.1 million, or $55.18/SF. The building had an in-place capi- talization rate of 6.82% at the time of sale. First vice president of in- vestments Craig Dunkle and associate Jackson Day , in- vestment specialists inMarcus a much higher local value add. But the road fromhere to there is not a straight one.” On the Long-Term Effect of Remote Working on Demand for Office Space • “Let’s assume there is only a 10% reduction in man hours in offices. Imagine what that does to rents and vacancy rates. And 10% would be over- ly optimistic. In addition, we are going to see a more diversi- fied American economy in the next few years. We have gone very services-heavy, because that’s what globalizationmade us best at in terms of value adds. But if we’re going to do more manufacturing, more of our labor force is going to be blue collar.” • “Whether it’s competition for workers because of the changing sectoral balance or changing work habits, both of those would tell me we’re going to need fewer white-collar of- fices. That doesn’t mean these office buildings go away, but it does mean that large portions of themwill probably be repur- posed. And there’s no reason why that can’t happen.” On How Investment in Green Energy Will Impact New Jersey • “The short answer is - it shouldn’t. Don’t take this the wrong way, but this is not a sunny, windy place. When it comes to local generation, I’m

continued from page 2B Geopolitical strategist headlines NAIOPNJ’s Industry Insights Series

NAI CIR handles 3062 s/f in Pennsylvania transactions

3500 Market St.

HARRISBURG, PA — NAI CIR completed the following transactions: The 1,862 s/f office suite located at 3500 Market St. in Camp Hill has been leased to Quality Builders Warranty. Joe Bedard , of NAI CIR, represented the landlord, Morefield Communications. Casey Khuri and Amber Corbo , of NAI CIR repre- sented the tenant.

The 1,200 s/f office located at 160 S. Progress Ave. in Harrisburg has been added to AZTAC’s lease. Pete Higgins , of NAI CIR, represented the landlord. Dan Alderman , of NAI CIR, represented the tenant. The two unit multi-family property located at 205 Briggs St. in Harrisburg City has been sold to BD Property Man- agement LLC. MAREJ

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