In 2014, midstate had its share of large nonresidential deals. Transactions included warehouses, shopping centers, apartments and health care real estate
The Hershey Plaza in Derry Township was sold in June. – (Photo / Submitted)
Health system mergers, acquisitions and affiliations might be commonplace in the health care industry, but it’s not every day we see $174 million spent on medical real estate.
In September, New York City-based American Realty Capital Healthcare Trust II Inc., a nontraded real estate investment trust sponsored by American Realty Capital, spent $174.1 million on a leasehold interest in six medical offices owned by Harrisburg-based PinnacleHealth System in Cumberland and Dauphin counties.
That included $42.6 million for the Landis/Memorial buildings on the Polyclinic Campus in Harrisburg. That was the largest single office transaction of 2014 in Central Pennsylvania, according to CoStar Group data from Mike Kushner of Omni Realty Group and other regional sales data pulled by Drew Bobincheck from Landmark Commercial Realty Inc. and Heather Kreiger from Rock Commercial Real Estate LLC.
The leasehold interest on the Brady Medical Office Building on South Front Street was $26.4 million. That was the second-largest piece of the PinnacleHealth deal.
Biggest individual deals in Central Pa.
• Industrial: The largest industrial sale for an individual property was the 1-million-square-foot facility occupied by Goodyear Tire & Rubber Co. in West Manchester Township, York County. The 47.6-acre property was purchased for $52.3 million in February by American Realty Capital Trust Inc.
Also of note in industrial: The 303,839-square-foot FedEx distribution facility at 111 Fulling Mill Road in Lower Swatara Township, Dauphin County, sold for $43.5 million in August to American Capital Corp. The facility was completed in 2014 as a build-to-suit, with a 15-year lease. Also, formerly occupied by American Signature Furniture, the 624,800-square-foot warehouse at 325 S. Salem Church Road in West Manchester Township, York County, sold for $26 million in March to Endurance Real Estate Group.
• Retail: The largest retail sale for an individual property was in Shippensburg Township, Cumberland County. The Lowe’s at 250 S. Conestoga Drive sold for $24.4 million in October to ARC Real Estate Group. Built in 2008, the freestanding retail building is 171,069 square feet, with 17 years remaining on a lease.
Also of note in retail: The Manor Shopping Center on the Millersville Pike in Lancaster Township, Lancaster County, sold in December for $35 million to Wharton Realty Group Inc. The center has 247,000 square feet of retail space. The Hershey Square shopping center in Derry Township, which has 218,290 square feet, sold for $28.5 million in October to a joint venture led by Heidenberg Properties Group.
• Multifamily: Belair Townhomes, a 208-unit property in Manheim Township, Lancaster County, was purchased for $25.6 million in October by RP Management Inc. Nearby Mayfair Manor Apartments was also purchased by RP for $4.9 million, resulting in a $30.5 million total investment.
Also of note in multifamily: The Hershey Plaza, a 216-unit apartment building on West Chocolate Avenue in Derry Township, was sold as part of a $15.3 million deal in June to Riverview Manor Associates LP. The apartment building was sold for $13.1 million, with a neighboring 17,550-square-foot retail center accounting for the rest.
What’s on the nonresidential real estate market?
The nonresidential real estate market is always full of buying opportunities.
Here are some of the top listings, according to midstate brokers:
There are a few sizable tracts available in the Harrisburg area.
• A 152-acre land parcel is available at 2402 Fulling Mill Road in Lower Swatara Township. It is listed at $99,000 to $15 million.
• A 127.5-acre parcel is available at 1228 Walnut Bottom Road in South Middletown Township. It is listed at $12 million.
• A 95.25-acre parcel is available on East Penn Drive in East Pennsboro Township. It is listed at just under $10 million.
• A 50-acre Summerdale tract at 206 First St. in East Pennsboro Township is listed at $8 million.
The former Pennsylvania State Employees Credit Union headquarters building at 1 Credit Union Plaza in Harrisburg is available for sale at $7.9 million. Built in 1990, it is 180,000 square feet.
Also of note: The McCann School of Business facility at 346 York Road in South Middleton Township is for sale at nearly $7 million. Built in 1986, it is nearly 49,000 square feet. The GTS building at 441 Friendship Road in the TecPort Business Center in Swatara Township is available for $5 million. Renovated in 2004, the building is 54,000 square feet.
The York Galleria at 2899 Whiteford Road in Springettsbury Township remains on the market, with 482,620 square feet available for sale. The asking price has not been disclosed.
Also of note: The Newberry Commons shopping center at 10-320 Newberry Commons Drive in Newberry Township is available but with no listed asking price. It has 245,800 square feet available for sale. The hhgregg Inc. store at 5800 Carlisle Pike in Hampden Township is for sale at $7.2 million. The Annville East Center at 1251 E. Main St. in Annville Township is available for $4.8 million. The center has nearly 80,000 square feet of retail with five tenants.
A 324,727-square-foot Penn Township warehouse at 26 Barnhart Drive is listed at nearly $11 million.
Also of note: A 278,582-square-foot flex building at 57 Grumbacher Road in Manchester Township is listed for $8.4 million. A 64,000-square-foot warehouse at 1961 Fulling Mill Road in Lower Swatara Township, which was renovated in 2009, is available for $6.5 million.
Housing and hospitality
The Hotel Carlisle & Embers Convention Center at 1700 Harrisburg Pike in Middlesex Township is listed for $6.5 million. Built in 1995, the hotel is 250,000 square feet. with 267 rooms. The Hopewell Estates, a 30-unit apartment building at 1700 N. Second St. in Harrisburg, is listed for $1.3 million. Built in 1897 as a hospital and renovated in 2012, the structure is 18,273 square feet.
Courtesy of the Central Penn Business Journal. Read the Full article here: In 2014, midstate had its share of large nonresidential deals | CPBJ.