Bethlehem Steel Outsources Management of Corporate Complex

The complex consists of about two million sf of rentable space. Among the properties are Martin Tower, a 21-story office building of about 460,000-sf; a connecting three-story, 250,000-sf office annex and a standalone, 88,000-sf flex office/light industrial building.

The Allentown office of Insignia/ESG is rental agent for these three properties. The annex is 100% leased to Dunn & Bradstreet, which also occupies some lower floors of the tower, Bill Wolf of Insignia tells GlobeSt.com.

Approximately 59,000-sf of Martin Tower and all of the flex office/industrial building are vacant. Wolf says the asking full-service rental rate for the tower is $19 per sf, and asking full service rental rate for the general purpose flex building is $14 per sf.

Buildings in the complex will not be included in any buy-out of Bethlehem Steel, according to both Wolf and Pam Morris, a marketing coordinator for Summit. Currently, a $1.5-billion offer from International Steel Group for purchase of the steel-making assets of Bethlehem is under consideration.

According to the outsourcing management agreement, Summit will oversee operations and maintenance and act as limited agent for contracting most third-party services. "This agreement is consistent with our plan to outsource activities that are not part of our core business," says Bethlehem's VP of business services, Edmund P. Reybitz, in a statement.

Also under the agreement, Summit will hire approximately 10 current Bethlehem employees at the facilities. Frank T. Smith of Summit is currently overseeing property management, Morris tells GlobeSt.com. "A separate facility manager will be assigned to the complex," she adds.