X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BETHLEHEM, PA-An area estate has divested itself of its only commercial real estate property, the Sherwin Williams store at 1751 Stefko Blvd. The 5,700-sf unit, which includes significant storage space as well as a retail showroom, was built in 1963.

Adam Simon, an agent in the Philadelphia office of Marcus & Millichap, represented the seller and also procured the buyer, a company based in Trenton, NJ, which owns retail properties throughout the US and specifically in Eastern Pennsylvania. Simon tells GlobeSt.com the original asking price was approximately $660,000, but was reduced to $638,810, which is about $112 per sf, because the property required some repair.

Two years remain on the Sherwin Williams lease, and Simon says the retailer has expressed interest in exercising a final five-year option. The current rent is $51,540 a year, or about $9.20 per sf, according to Simon. He says that is about 15% to 25% below market rate.

“The buyer has the opportunity to capitalize on the increased rental rate during the option period or to reposition the asset on the growing Stefko Boulevard retail corridor,” he says. “The unit is located across from a strip center, and this is a growing area with a significant amount of new retail.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.