Industrial Rehabilitation

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Penwood Select Industrial Partners II, L.P.

CASE STUDY

Industrial Rehabilitation

Location: Allentown, PA

Property Description:

  • 80,084 square foot industrial building located on a 10.6-acre site in Allentown, PA.
  • Located at the intersection of S.R. 100 and I-78 within the Iron Run Corporate Center.
  • The site has rail service and significant excess land for expansion, trailer storage, or outside storage of goods.

Rationale for Acquisition:

The highly functional property is well located within an established industrial park. The property’s excess land provided the potential for expansion and/or additional outdoor storage. The location within Allentown off I-78 provides excellent regional, super-regional and national distribution potential. Penwood believed the location and site layout allowed the possibility to entertain multiple exit strategies and provided the opportunity to create value.

Investment Strategy:

Penwood acquired the property at a discount to replacement cost. The investment plan was to expand the building footprint by enclosing a covered storage area, implement a capital improvement program, and lease the property. In addition to increasing the rentable square footage, Penwood added nine dock-high loading positions, upgraded to energy-efficient T-5 lighting, installed an ESFR sprinkler system, and replaced the HVAC systems.

Results:

The investment strategy was executed, and the building was subsequently leased to an investment-grade water bottling tenant. The property was sold to an investor.

*Please note that past performance is not a guarantee of future results.

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