Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of 430 Penn Avenue, a 38,054-square foot office property located in Scranton, PA, according to Sean Beuche, PA broker of record and regional manager of the firm’s Philadelphia office. The asset sold for $2,100,000, or $55.18/SF. The building had an in-place capitalization rate of 6.82% at the time of sale.
First Vice President of Investments Craig Dunkle and Associate Jackson Day, investment specialists in Marcus & Millichap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, a Philadelphia-based developer. The buyer, a private investor based out of the Brooklyn area, was secured and represented by Craig Dunkle and Jackson Day,
The Subject Property is located at 430 Penn Ave in Scranton, PA. The building was 28% occupied at the time of the sale, with the PA Board of Probation and Parole being the single tenant. The state recently signed a ten-year lease extension running through 2030. The buyers plan on converting the vacant second floor space into apartments for young professionals in the Downtown Scranton area.
Craig Dunkle of the Dunkle Group of Marcus & Millichap stated “Both the buyer and seller achieved an attractive capitalization rate of return on the disposition and acquisition of the asset. The seller, a Philadelphia based development company achieved the simplification of their portfolio resulting from the disposition of an asset outside of their core market. The out of market buyer who was looking to penetrate the Pennsylvania market succeeded in acquiring a stabilized cash-flowing asset while capitalizing on the upside through the conversion of the vacant space to multi-family apartments. We are ecstatic to once again create significant value for our clients in a secondary market.”
About Marcus & Millichap (NYSE: MMI)
With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 8,954 transactions in 2020 with a value of approximately $43 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.
