PA Dept. of Conservation & Natural Resources 3240 Schoolhouse Rd 40,671 SF Flex Building Middletown, PA 17057 $6,845,000 ($168.30/SF) 9.50% Cap Rate

Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant office property leased to The Commonwealth of Pennsylvania - Department of Conservation and Natural Resources, (the “Property”) in Middletown, a borough located just outside of Harrisburg, the state capital of Pennsylvania. The Department of Conservation and Natural Resources is an investment grade credit tenant. A department within the Commonwealth of Pennsylvania (Moody’s: Aa3), the mission of the department is to conserve and sustain Pennsylvania’s natural resources for present and future generations’ use and enjoyment. The
Pennsylvania Department of Conservation and Natural Resources lease has 7 years of firm term remaining with a substantial $2 per square foot base rental increase in 2028. The Additional rent, which covers the costs of real estate taxes, utilities, trash removal, insurance, and janitorial services, can be increased up to five percent (5%) year over year depending on the Consumer Price Index (CPI). The property’s location is seconds from State Route 283 boasting 35,900 VPD and just under 9 miles from Downtown Harrisburg, the state capital of Pennsylvania. The property is within the Harrisburg, PA MSA that is home to a population of over 603,000 people, the fourth largest metro area in Pennsylvania. Additionally, the property is under three and one-half miles from Interstate Highway 76 which boasts 34,600 VPD and provides direct access east to Philadelphia, Pennsylvania and west to Akron, Ohio. Middletown is conveniently located in the southcentral region of Pennsylvania less than 100 miles from three major metro areas in the northeast. Baltimore is located just 63 miles south, Philadelphia is just 85 miles southeast, and Washington D.C. is located 92 miles south.
INVESTMENT GRADE CREDIT (MOODY’S: Aa3) – The Department of Conservation and Natural Resources is an investment grade credit tenant. A department within the Commonwealth of Pennsylvania (Moody’s: Aa3), the mission of the department is to conserve and sustain Pennsylvania’s natural resources for present and future generations’ use and enjoyment.
EXTREMELY “STICKY” TENANT – The Department of Conservation and Natural Resources includes pallets and pallets of rocks which are kept and stored within the lower part of the building and would make any type of relocation extremely time consuming and costly.
SUBSTANTIAL RENTAL INCREASES – The Pennsylvania Department of Conservation and Natural Resources lease has 7 years of firm term remaining with a substantial $2 per square foot base rental increase in 2028. The Additional rent, which covers the costs of real estate taxes, utilities, trash removal, insurance, and janitorial services, can be increased up to five percent (5%) year over year depending on the Consumer Price Index (CPI).
HARRISBURG, PA MSA – The property is located just under 9 miles from Downtown Harrisburg, the state capital of Pennsylvania. The property is also located within the Harrisburg, PA MSA that is home to a population of over 603,000 people, the fourth largest metro area in Pennsylvania.
NEARBY MAJOR THOROUGHFARES – The property is located seconds from State Route 283 that boasts 35,900 VPD and under three and one-half miles from Interstate Highway 76 which boasts 34,600 VPD and provides direct access east to Philadelphia, Pennsylvania and west to Akron, Ohio.
CENTRAL LOCATION – Middletown is situated in the southcentral region of Pennsylvania and is located less than 100 miles from three major metro areas in the northeast. Baltimore is located just 63 miles south, Philadelphia is just 85 miles southeast, and Washington D.C. is located 92 miles south.