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WHITEHALL, PA-A 14.3-acre ground lease for a 166,609-sf Lowe’s Home Improvement Center has traded here for $13.2 million. The cap rate was 6.05%. Brad Nathanson, a senior associate and director of Marcus & Millichap’s National Retail Group in Philadelphia, and Jordan Muchnick, an associate also in the firm’s Philadelphia office, represented the seller and the buyer.

According to Nathanson, the buyer was a regional entity; the seller was a national shopping center developer. The legal owner of the property before the trade was Whitehall Newman Associates. The new owner plans to leverage the site’s main selling points, Nathanson tells GlobeSt.com: a rare infill location in this submarket that can accommodate 166,609 sf and that is occupied by a creditworthy tenant. There were between 10 to 20 bidders for the property.

Located at 2650 MacArthur Rd., the property is situated on Route 45, a six-lane highway that is Lehigh Valley’s main retail corridor. “It is difficult to find available acreage of that size on that particular stretch,” he says. Also, “there are few creditworthy big box ground leases that aren’t owned by the tenant themselves.” Lowe’s has signed a 20-year triple net ground lease for the space. Originally the property had been a Levitz Furniture store that was vacant when the developer acquired it. Lowe’s opened its doors in October, Nathanson says.

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