Bethlehem | PA
Type: Office – Class B Size: 51,383 RSF Year Built: ±1982
Location: Historic Bethlehem Central Business District, a ¼ mile from Route 378, which providfes direct access to Route 22.
Case Study: Dunn Twiggar acquired this property at the end of 2008. We first approached this property because of its great central business district location, good tenant mix and building quality. The building is leased to a mix of office and retail tenants where the majority of the lease rates are significantly below market. Our value-add strategy is to upgrade and improve the building’s common area finishes and mechanical systems and bring the rental rates to at or above market.
Some positive points for this project are:
- Purchase Price: 60 W. Broad was purchased at a price that was well below replacement cost and a CAP Rate that was above market for this product type.
- Cash Flow: The property will have positive cash flow.
- The location: Located in the heart of Historic Bethlehem’s Central Business District and restaurant row. This is the most desirable urban location in the Lehigh Valley.
- Floor Plates: The building floor plates set up well for smaller multi-tenant users, which is the demand in the Lehigh Valley office market.
- Parking: There is one public parking deck adjacent to the building.