Buildings Sell in Harrisburg for $2.2

"The sale of a 36,303 square feet industrial office warehouse closed late January, which situated on Amity Road in Harrisburg, Pennsylvania.

The sale closed on January 31, 2011 at the sales price of $2,215,000, which represents a 10.86 percent capitalization rate on current income. The seller, Natale Realty Company, Inc., a Pennsylvania corporation, The buyer, was DC Partners Amity Road, LLC, a Pennsylvania limited liability company.

"This property represented an opportunity to acquire two well-maintained, fully occupied, Class B flex buildings in the Harrisburg East industrial submarket," stated the broker. "The two tenants, JST Manufacturing Company, one of the top ten connector manufacturers in the world, and R.E. Michel Company, Inc., one of the largest wholesale distributors of HVAC equipment in the country, benefit from the property's close proximity to Interstate 81, Interstate 83 and the Pennsylvania Turnpike. 421 Amity Road was a combination of a strong tenant base, recent construction and renovations, net leases and minimal deferred maintenance which allows the new owners to step right in and maintain a steady cash flow for years to come.

After exhausting our marketing efforts with local investors, we expanded the campaign to regional buyers from Washington D.C. through New York. The ultimate buyer was a partnership formed between two investors based in Northern New Jersey and New York City. It was clear that local buyers were looking backwards at value while buyers from out of town saw stability and long-term upside," he added."