POTENTIAL EXPANSION
INVESTMENT SUMMARY
A CBRE National Partners Investment Opportunity
TRUE VALUE6736 Tilghman Street, Allentown, PA
78
• SINGLE TENANT• 150,598 RSF• LEHIGH VALLEY• I-78 / US ROUTE 100 INTERCHANGE
6736 Tilghman Street | Allentown, PA
THE OFFERINGCBRE, Inc. (“CBRE”) has been retained by Ownership to arrange for the disposition of 6736 Tilghman Street located at the I-78 / US Route 100 Interchange in Allentown, Lehigh County, Pennsylvania (the “Property”). Positioned within the in-fill Iron Run Corporate Center in one of the Lehigh Valley’s most well leased warehouse/distribution locations, the Property affords optimal east-west and north-south accessibility via I-78 and I-476 respectively, each within three miles.
6736 Tilghman is 100% leased by True Value Company, which has occupied the Property since 2007. True Value owns and operates an adjacent 530,000 square foot regional distribution center, and has benefited from operating efficiencies, renewing its lease at the subject Property twice, continuing utilization as seasonal storage for bulk items.
Currently leased significantly below market rents achieved in comparable single-tenant bulk distribution buildings at this strategic interchange, 6736 Tilghman provides unique exposure to potential yield upside. A 15.4-acre site distinguishes the Property from its competitive set, providing potential for future building expansion or expansion of its already above-standard trailer storage capacity.
6736 Tilghman represents a rare opportunity to acquire a fully-leased, institutionally-maintained, functional, bulk warehouse/distribution facility in one of the I-78 / I-81 Industrial Corridor’s most desirable submarkets, complemented by unique layout flexibility and yield upside.
FINANCIAL SUMMARYOccupancy: 100%
Tenants: True Value Company (2013 Revenue $1.4 Billion)
Year 1 NOI: $640,299 ($4.25 PSF)
Market Rent: +/- $4.50 NNN
Projected Rental Rate Growth:
17.6% cumulative growth projected over the next five years (per CBRE Econometric Advisors)
PHYSICAL SUMMARYAddress: 6736 Tilghman Street, Allentown, PA 18106
Land Area: 15.4 acres
Building Size: 150,598 SF, potential expansion of ±55,000 SF
Year Built: 1975
Construction:Concrete masonry unit (CMU), steel panel and stone veneer exterior finishes
Building Dimensions: Depth: 334’ - 424’Width: 324’
Loading Configuration: Front loading Side rail loading (Inactive)
Clear Height: 21’
Loading: 16 Dock Doors / 1 Drive-In Door / 6 Rail Doors
Truck Court: ± 100’ - 120’
Trailer Parking: +/- 40 trailer positions (with potential expansion)
Car Parking: 17 spaces
Executive Summary •
INVESTMENT HIGHLIGHTS
CREDIT WORTHY TENANCY• The True Value cooperative represents independent retailer locations worldwide with
2013 revenue of $1.4 billion• As one of the world’s largest retailer-owned hardware cooperatives, True Value
represents independent retailer locations in over 60 countries with more than 2,500 associates
OPERATING EFFICIENCY – CONTINUED RENEWAL• True Value has renewed its lease at the Property twice, with the latest renewal in
December 2014• 6736 Tilghman is immediately adjacent to one of the company’s 13 regional
distribution centers and fulfills the DC’s need for additional out-of-season bulk storage for product ranging from large gas grills to bulk rock salt packages
YIELD UPSIDE• Current Net Operating Income of approximately $4.25/SF is significantly below
market rent, presenting a unique opportunity to capitalize on the Lehigh Valley’s surging leasing market
• Over a ten year span, asking rents at the I-78 / US Route 100 Interchange have averaged $4.56/SF NNN
FLEXIBLE DESIGN - EXPANSION CAPACITY• 15.4-acre site could accommodate building expansion of approximately 55,000
square feet, along with approximately 63 car parking spaces• Current impervious coverage below maximum ratio could also present an opportunity
to expand the Property’s already above-standard trailer parking capacity
FUNCTIONAL BULK WAREHOUSE DISTRIBUTION• Ample loading with 8,850 rentable square feet per door• T-5 / T-8 Lighting installed in 2011, with increased concentration in speed bay• EPDM Roof installed 2005, minimizing near-term capital exposure• Mechanical dock levelers, dock locks, lights, bumpers, and seals
ACCESSIBILITY• Within three miles of I-78 and I-476• 90 miles from the Ports of New York/ New Jersey• Within 200 miles of New York City, Philadelphia, Washington, DC, and Baltimore
EXCEPTIONAL LEASING FUNDAMENTALS• Direct Vacancy at the I-78 / US Route 100 Interchange of 1.6% as of year-end 2014
outpaces the overall Lehigh Valley (6.6%)• Average asking rents at this 28.8 million square foot concentration of industrial/flex
buildings have exceeded the overall Lehigh Valley market by 5.6% over the past 10 years
IRON RUN CORPORATE CENTER• The Property is positioned within one of the Lehigh Valley’s most established, mature
bulk warehouse/distribution and shallow bay parks which totals approximately 6.5 million square feet in 69 buildings
• 80% of inventory in the park features minimum clear heights of 24’ or lower, and 70% of the park was built out in the 1970’s/ 1980’s
• There are virtually no in-fill development pads with comparable proximity to the I-78 / US Route 100 Interchange, and the vast majority of lots are fully built out without expansion capability
LEHIGH VALLEY DEMAND• Total Bulk Net Absorption of 5 million square feet from 2013 - 2014 (represents 7.6% of total
bulk inventory)• One of the East Coast’s most active development locations, with 5.8 million square feet
delivered in 2014/2015 and 6.0 million square feet under construction - many current projects are either pre-leased or build-to-suit
• Over the past five years, absorption in the Lehigh Valley has totaled 10.1 million square feet, while only 6.7 million square feet of new bulk product has been delivered
6736 Tilghman Street | Allentown, PA
A T L A N T I CO C E A N
LakeErie
LakeOntario
Providence
Charlottesville
Ocean CIty
Washington, DCArlington Annapolis
Baltimore
Albany
Hartford
Pittsburgh Harrisburg Trenton
Dover
Wilmington
Newark
Yonkers
Rochester
Bu�alo
HarpersFerry
Lancaster
NiagaraFalls
New Haven
Syracuse
Allentown
Erie
New York
Philadelphia
Atlantic City
Scranton
Spring�eld
Worcester
Morgantown
Corning
York
Carlisle
Wilkes-Barre
Altoona
Reading
Binghamton
Bedford
Gettysburg
Concord
Boston
Portsmouth
Toronto
Hamilton
W E S T V I R G I N I A
P E N N S Y L V A N I A
V I R G I N I A
MARYLAND
DEL.
CONN.
N.J .
MASS.
O N T A R I ON E W Y O R K
N.H.VT.
90
81
88
80
79
390
17
90
80
76
76
7881
81
83
68
70
270
81
66
79
95
95
95
495
380
195
13
301
87
90
495
39584
84
64
29
99
86
91
84
30
30
476
8987
81
6
15
15
3381
5 0 M I L E S
PORT OF WILMINGTON
PORT OF PHILADELPHIA
PORT OF NEW YORK/ NEW JERSEY
PORT OF BALTIMORE
KEY DISTANCESPorts of NY/ NJ 90 milesPhiladelphia, PA 60 milesNew York City, NY 95 milesBaltimore, MD 150 milesWashington, DC 185 milesBoston, MA 310 miles
LOCATION HIGHLIGHTS
LOCATION HIGHLIGHTS• Lehigh Valley location affords unrivaled access to the
New York City Metropolitan Population of 19.8 million• 300 Mile radius includes 38 million people• 600 Mile radius includes 40% of US population• $1.1 Trillion in consumer expenditures within 600
Miles - projected to grow 9.1% over the next five years• FedEx & UPS Regional Distribution Hubs within close
proximity• Two class 1 railroads (Norfolk Southern and
Canadian Pacific) interchange at Bethlehem Intermodal
2.6 MILES
476
DISTANCES TO :
2.4 MILES
78
Executive Summary •
TRUE VALUE
WACKER CHEMICAL CORP
ABC SUPPLY/ HERR’S
O’BRIEN’S MOVING & STORAGE
CELLULAR CONCRETE
WINHOLT/ LOGISTICS & DISTRIBUTION INC.
SYKES ENTERPRISES
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SUBMARKET AERIAL - IRON RUN CORPORATE CENTER
TILGHMAN STREET
6736 TILGHMAN STREET
BLUELINX
AMERICOLD
AMERICOLD
H.T. LYONS
LEHIGH VALLEYEXPRESS
INTERNATIONALBATTERY
CONTINENTAL
YOURWAYTRANSPORTATION
WAREHOUSESPECIALIST
SIGMA-ALDRICHCO.
NEOVIALOGISTICS
CARPENTER CO.
VALV-TECH, INC.ALLENTOWN CANDY
KNOLL
SAPPIFINE PAPER
CENTRAL ADMIXTURE/FLEXLINK
ATAS INT’L
ENERSYS
RUPP
SVIL
LE R
OAD
• MILL ROAD
SNOWDRIFT ROAD
ALLENTECH
VITRA
SANBOR / PMD
J. R. PETERS
PHOEBE SERVICES
LUTRON
RODALE
ANDESA
INSTITUTIONAL OWNERSHIP
Cohen Asset Management Liberty Property Trust
DCT Industrial Trust Oaktree Capital Management
DRA Advisors PennCap Properties
EIP Prologis
Exeter Property Group Seagis Property Group
High Street Equity Advisors Indcor
Industrial Income Trust (IIT) Welsh Property Trust
CAPITAL MARKET CONTACTS
NORTHEAST
Michael D. Hines Executive Vice President +1 610 251 [email protected]: PALicensed Salesperson: NJ
Brian Fiumara Senior Vice President +1 610 251 [email protected]: PA Licensed Salesperson: NJ
Brad A. Ruppel Senior Associate +1 610 251 [email protected]: PA, DELicensed Salesperson: NJ
For more information, please visit our website at
www.cbremarketplace.com/6736Tilghman
DEBT & EQUITY FINANCE
James Gunning Executive Vice President+1 201 712 [email protected]
Offering integrated real estate capital markets solutions from strategy to execution—delivered by a seamless national partnership
NORTHEASTMichael D. HinesBrian FiumaraBrad A. Ruppel
SOUTHEASTChris RileyFrank FallonBrian BudnickJennifer Klingler
SOUTH CENTRALJack FrakerJosh McArtorJonathan BryanHeather Venegoni
NORTH CENTRALMike CaprileTed StaszakStephanie Park
DEBT & EQUITYFINANCESteven RothSteven Kundert
WESTDarla LongoBarbara EmmonsRebecca Finkel
DEBT & EQUITYFINANCEVal AchtemeierBrett Green
www.cbre.com/np
© 2015 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
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