Offer Due Date
Ownership is requesting all written offers be submitted by 5:00 PM EDT Friday, June 9th, 2017. Please submit your LOI via email to Steve Marzullo stephen.marzullo@cbre.com and Adam Silverman adam.silverman@cbre.com.
Offering Overview
CBRE, Inc. has been retained by ownership as the exclusive marketing advisor for the disposition of State Hill Professional Center located at 1991 State Hill Road and Commerce Court located at 50 Commerce Drive in Wyomissing, a borough of Berks County, Pennsylvania (“Portfolio” or “Properties”). Containing two medical office properties totaling 23,730 square feet, this 89% occupied Portfolio is secured by two medical tenants comprising more than 62% of the leased space with terms extending through 2025 and 2027 respectively. The Portfolio also still offers an immediate opportunity to enhance value today by leasing the available medical office space totaling 11% of the Portfolio, and for an even greater increase in the future by converting more than 7,800 square feet from office to medical use.
The Wyomissing office submarket encompasses over 2.4 million square feet of class A and B office space but, with limited opportunities for new development, has seen only a few new buildings since 2009. The Portfolio is situated less than a mile from the State Hill Road exit of Route 222, and is easily accessible via major roadways including the PA Turnpike (I-76) connecting Montgomery, Chester and Lancaster counties, Interstate 176 heading north/south from Morgantown to Reading, and Route 422 running east/west from King of Prussia to Reading. Both of Reading Health’s and Penn State Health St. Joseph’s two hospital campus systems are all located with a 10-minute drive of the Properties.
Investment Highlights
- Long-Term Leases Provide Stable Cash Flow – The Portfolio is 89% occupied including two medical tenants comprising more than 62% of the leased space with terms extending through 2025 and 2027 respectively.
- Value-Add Opportunity – The Portfolio offers an opportunity to enhance value by leasing the available medical space, and a future conversion of more than 7,800 SF from office to medical use.
- Institutionally Maintained – The Portfolio is in excellent condition and has benefited from the long term ownership of Szeles Real Estate Development, a multi-generational company with a stellar reputation for its management practices.
- Easily Accessible Strategic Location – The Portfolio is situated less than a mile from the State Hill Road exit of Route 222, and is easily accessible via major roadways including the PA Turnpike (I-76), Interstate 176, and Route 422. Both of Reading Health’s and Penn State Health St. Joseph’s two hospital campus systems are all located with a 10-minute drive of the Properties.
- Tenant Investment – Long term occupancy is further secured given improvements to tenant space including: Berks Plastic Surgery at Commerce Court, and Reading Health Physician Network for its Endocrinology and Diabetes Center at State Hill Professional Center.
- Surrounding Amenities – An in-fill location delivers ample retail and dining options including the Berkshire Mall and power centers featuring Wal-mart, Boscov’s, Target, Dick’s Sporting Goods, The Home Depot, Outback Steakhouse, Chipotle, Wawa and Chick-fil-A.
- Discount to Replacement Cost – This offering provides the rare opportunity to acquire two established medical office properties at a very competitive basis relative to the cost of new construction.
Investment Profile
Property Type: Medical Office Portfolio
Total Portfolio Size: 23,730 SF
Occupancy: 89%
NOI (95% OCC): $369,504
Cap Rate: 8.25%
Offering Price: $4,480,000
Price PSF: $189
Major Tenants: Reading Health Physician Network, Berks Plastic Surgery, Resource Associates
Contact Information
Stephen Marzullo
Senior Vice President
+1 610 251 5161
Suite 320
stephen.marzullo@cbre.com
Licensed: PA, DE
Licensed Salesperson: NJ
Adam Silverman
Vice President
+1 610 251 5141
adam.silverman@cbre.com
Licensed: PA
CBRE, Inc.
1200 Liberty Ridge Drive
Wayne, PA 19087
+1 610 251 0820
Licensed Real Estate Broker
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