Single Tenant Building Leased to the State of Pennsylvania (Moody’s: AA3)
Middletown, PA (Harrisburg MSA)
The Opportunity
Summary
- Price: $7,650,000
- Cap Rate: 8.50%
- NOI: $650,262
- Lease Type: Fee Simple: NN
- Building Size: 40,671 SF
- Parcel Size: 13.14 Acres
- Year Built/Renovated: 1981/2022
- Remaining Lease Term: 7.5 Years
- Options: One (1), Five (5) Year Option
- Rental Increases: $2 PSF Increase in 2028 on Base Rent
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant office property leased to The Commonwealth of Pennsylvania - Department of Conservation and Natural Resources, (the “Property”) in Middletown, a borough located just outside of Harrisburg, the state capital of Pennsylvania. The Department of Conservation and Natural Resources is an investment grade credit tenant. A department within the Commonwealth of Pennsylvania (Moody’s: Aa3), the mission of the department is to conserve and sustain Pennsylvania’s natural resources for present and future generations’ use and enjoyment. The Pennsylvania Department of Conservation and Natural Resources lease has 7.5 years of firm term remaining with a substantial $2 per square foot base rental increase in 2028. The Additional Rent, which covers the costs of real estate taxes, utilities, trash removal, insurance, and janitorial services, can be increased up to five percent (5%) year over year depending on the Consumer Price Index (CPI). The property’s location is seconds from State Route 283 boasting 35,900 VPD and just under 9 miles from Downtown Harrisburg, the state capital of Pennsylvania. The property is within the Harrisburg, PA MSA that is home to a population of over 603,000 people, the fourth largest metro area in Pennsylvania. Additionally, the property is under three and one-half miles from Interstate Highway 76 which boasts 34,600 VPD and provides direct access east to Philadelphia, Pennsylvania and west to Akron, Ohio. Middletown is conveniently located in the southcentral region of Pennsylvania less than 100 miles from three major metro areas in the northeast. Baltimore is located just 63 miles south, Philadelphia is just 85 miles southeast, and Washington D.C. is located 92 miles south.
Investment Highlights:
Tenant
Jurisdiction: GOVERNMENT OF PENNSYLVANIA
Credit Rating: Aa3 (Moody’s)
Headquarters: HARRISBURG, PA
Website: WWW.DCNR.PA.GOV
The Pennsylvania Department of Conservation & Natural Resources (DCNR) is an agency of the U.S. State of Pennsylvania established in July of 1995 and headquartered in Harrisburg, PA. The department was created when the former Department of Environmental Resources was split into the DCNR and the Department of Environmental Protection. The department’s mission is to conserve and sustain Pennsylvania’s natural resources for present and future generations’ use and enjoyment. They are in charge of maintaining and protecting the 124 state parks on Pennsylvania, managing 2.2 million acres of state forest land, and providing information on the state’s ecological and geologic resources. The DCNR Bureau of Geological Survey, also known as the Pennsylvania Geological Survey, studies all aspects of the geology of Pennsylvania and makes its findings available to the public. The library houses a complete collection of Pennsylvania Geological Survey publications, state-related USGS and U.S. Bureau of Mines reports and maps, and selected publications from other states and countries.