DOWNTOWN HARRISBURG VALUE-ADD MULTI-TENANT MIXED USE BUILDING

Harrisburg, PA

The Opportunity

Summary:

ASKING PRICE $3,200,000
PRICE PER SF $36.00
NOI $118,765
OCCUPANCY 33%
BLDG SIZE 88,020 SF
PARCEL SIZE 0.39 Acres
YEAR BUILT 1986

Forged Real Estate is pleased to exclusively offer the opportunity to acquire the condominium interest in a multi-tenant office building (the “Offering”) in Harrisburg, Pennsylvania, the county seat of Dauphin County. Situated in the core of downtown Harrisburg, blocks from the State Capitol, the office building offers investors exposure to one of Pennsylvania’s most stable and strategically important markets. As the state capital and the economic hub of Dauphin County, Harrisburg benefits from a resilient, diversified economy anchored by state government, healthcare, education, logistics, and professional services. The condominium office building is being offered at a very modest price of $36/SF. The low basis allows for the Buyer to offer more concessions, lower rents, while having more money for Tenant Improvements (TIs), leasing commissions, and capital improvements. The office building is currently ~33% occupied and offers a substantial value add component and multiple lease up strategies. This allows the owner the flexibility to either stack floors and target larger Tenants, tailoring future amenities to win those specific Tenants, or divide the larger suites and target the smaller to mid-sized Tenants. Both strategies should result in increased leasing, a decrease in Landlord’s operating expenses and an increase in net operating income. 225 Market Street has an underground parking garage with fifteen (15) owned parking spaces for the Tenants, a rare amenity in downtown Harrisburg.

The property is located less than one mile from Exit 43 along Interstate 83, a major regional thoroughfare with traffic counts of approximately 116,600 VPD. The employees traveling from I-83, I-81 and Route 322 enjoy and use a covered parking garage, a rare amenity in downtown Harrisburg. Additionally, 0.15 miles from the property is the Harrisburg Transportation Center, home to Amtrak intercity bus service and local transit, making it easily walkable for commuters and a main reason it has a 95/100 walkability score. Additionally, the property enjoys a dense and growing population base, with approximately 202,000 residents and 84,000 households within a 5-mile radius. Both population and household counts have increased since 2010 and 2020 and are projected to continue growing through 2030.

Investment Highlights:

LOW PRICE PER SQUARE FOOT – The condominium office building is being offered at a very modest price of $36/SF. The lower price point is significantly below replacement cost and allows for better ownership flexibility during lease negotiations. The low basis allows for the Buyer to offer more concessions, lower rents, while having more money for Tenant Improvement (TI), leasing commissions, and capital improvements.

PRIME DOWNTOWN HARRISBURG LOCATION WITH DURABLE DEMAND DRIVERS – Situated in the core of downtown Harrisburg, the property offers investors exposure to one of Pennsylvania’s most stable and strategically important markets. As the state capital and the economic hub of Dauphin County, Harrisburg benefits from a resilient, diversified economy anchored by state government, healthcare, education, logistics, and professional services. The presence of the Pennsylvania State Capitol Complex and numerous government agencies drives a consistent daytime population and creates reliable tenant demand from public-sector employees, contractors, and affiliated businesses.

UNDERGROUND PARKING GARAGE – 225 Market Street has an underground parking garage with fifteen (15) owned parking spaces for the Tenants, a rare amenity in downtown Harrisburg.

VALUE ADD COMPONENT & LEASING STRATEGIES – The office building is currently ~33% occupied and offers a substantial value add component and multiple lease up strategies. This allows the owner the flexibility to either stack floors and target larger Tenants, tailoring future amenities to win those specific Tenants, or divide the larger suites and target the smaller to mid-sized Tenants. Both strategies should result in increased leasing, a decrease in Landlord’s operating expenses and an increase in net operating income.

EXCELLENT ACCESSIBILITY, WALKABILITY AND PARKING – The property is located less than one mile from Exit 43 along Interstate 83, a major regional thoroughfare with traffic counts of approximately 116,600 VPD. The employees traveling from I-83, I-81 and Route 322 benefit from a covered parking garage, a rare amenity in downtown Harrisburg. Additionally, 0.15 miles from the property is the Harrisburg Transportation Center, home to Amtrak intercity bus service and local transit, making it easily walkable for commuters and a main reason it has a 95/100 walkability score.

DENSELY POPULATED AREA – The property benefits from a dense and growing population base, with approximately 202,000 residents and 84,000 households within a 5-mile radius. Both population and household counts have increased by more than 2% since 2020 and are projected to continue growing at a similar pace through 2030. The immediate 3-mile area includes roughly 105,000 residents and 44,000 households, providing a substantial local workforce and customer base that supports sustained demand for office space.