Allentown | PA
Type: Office – Class B Size: 35,080 RSF
Year Built: 1923, with renovations in 1980’s and early 2000’s.
Location: Allentown CBD.
Description: East Penn Place is a multi-tenant, 3½ & 5 story building (2 buildings connected) located in downtown Allentown at 8th & Hamilton Streets. It is a classic urban designed office building with beautiful brick face and large window lines.
Case Study: Dunn Twiggar acquired this property in January 2007. The building is currently 85% leased to a mix of office and retail tenants whose rental rates are significantly below market. Our value-add strategy will be to operate the building “as-is” for approximately 3 years and redevelop it in years 4 & 5. Our plan is to upgrade and improve the building’s finishes and mechanical systems and bring the rental rates to at or above market.
Some positive points for this project are:
- Purchase Price: East Penn Place was purchased at a price that was well below replacement cost.
- Cash Flow: The property will have positive cash flow.
- The Location: While downtown Allentown has yet to make a full recovery, this block of Hamilton Street is in the center of all the new redevelopment. Two new Class A office buildings, 90,000 sf and 76,000 sf, were just completed, PennDot moved its regional offices to the area and 3 new restaurants are scheduled to open in the next year.
- Floor Plates: The building floor plates are small, which allows for small full floor users or smaller multi-tenant users, which is the demand in the Lehigh Valley office market.
- Parking: There is one public parking deck and surface lot on the same block and 4 other lots within 5 blocks.