Real Estate Journal — Central/Western Pennsylvania — May 10 - 23, 2019 — 5C
www.marejournal.com
M id A tlantic
C entral /W estern P ennsylvania By Art Campbell, CAMPBELL Commercial Real Estate, Inc.
Loss of a lease retailer provides opportunity
I
t seems every fewmonths brings announcements of another large retailer
visible landmark in the town- ship, the LATDA’s actions will positively turn what could have become a deteriorating eye sore into an upscale com- munity center. The final part of the rede- velopment will be to sell the project to a private developer to complete build-to-suits for new tenants or an investor to purchase for the overall center, including the existing restaurants. Local compa- nies assisting the LATDA are CAMPBELL Commercial Real Estate, Inc. with leasing and brokerage, Tom Richey from Third Mountain Consulting with overall design, budgeting and development concepts, and Property Management, Inc. (PMI) with management functions. Art Campbell is the own- er of brokerage CAMP- BELL Commercial Real Estate, Inc. in Lemoyne.
s/f on two stories, renova- tions for alternative uses were cost-prohibitive. Adding to the property limitations for redevelopment where use restrictions that prohibited fitness and call centers as well as certain types of restaurants and retailers. Additionally, the adjoining 25,000 s/f build- ing previously occupied by Borders, other than some seasonal retailers, had been vacant for several years. Lower Allen Township De- velopment Authority (LAT- DA) decided to be proactive in a plan to help redevelop the property. After receiving approval of the bankruptcy court, LATDA purchased the parcel earlier this year. In addition to the BonTon and vacant space, the entire 14+ acre site, which is a land condominium, includes 3 free- standing restaurants. Texas Roadhouse, Bonefish Grill
and Burger King make up the balance of the center. It was determined the greatest value of the property would be real- ized by demolishing the entire 165,000 s/f of retail space and redeveloping the center. Believing the property was well suited for a hotel, a pri- vate developer was sought, and an agreement has re- cently been signed for an ap- proximately 128 room hotel to be constructed in 2020. All parties believe the proposed hotel and the existing restau- rants will greatly benefit from the proximity to the other. In addition, plans are for an additional 30,000 SQFT of mixed-use freestanding retail uses. As with all redevelopment, there are challenges. The Development Authority is careful to assure all zoning and use ordinances are being complied with no favoritism to
the Authority. The condominium will be completely reconstructed both in documentation and new lot lines. Aging sanitary sewer lines will be replaced to bet- ter serve the size and uses for the new center. Ingress and egress, often a limitation for repurposing, is not the case with the center. Located at a revamped exit of Rte.15 off site improvement are well suited to serve the property. Traffic studies have indicated the redevelopment will actually generate no higher tip counts than the previous uses, even though it has been years since the center has generated high traffic counts. Utilities have been terminat- ed to the buildings, environ- mental remediation is being completed and demolition will take place over the summer. Though the center and BonTon building have long bee a very
closing their d o o r s e n - tirely or con- solidating to fewer loca- tions. When Bon- Ton Stores d e c l a r e d bankruptcy,
Art Campbell
Lower Allen Township was rightly concerned with what would happen with the build- ings that anchored the very visible retail center in the township. The last few years has seen many large vacant boxes con- verted to different uses. Fit- ness and medical centers, warehouse, and entertainment venues are just some of the alternative uses. Considering the functional obsolescence of the BonTon store with 140,000
Redevelopment BonTon / Borders Camp Hill, PA
SALE/LEASE/BTS • Off Site Improvements Completed • Utilities to Pads • Stormwater in Place • Traffic Count 73,000 AADT • General Commercial Zoning
Art Campbell – art@acampbell.net Jessica Gasper – jessica@acampbell.net Larry Kostelac – larry@acampbell.net CAMPBELL Commercial Real Estate, Inc. (717) 737-6161 FOR MORE INFORMATION:
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