Value-add professional office building deal #1

[Joel Krieger]

Investment Info:

Office Space commercial investment investment in Allentown.

Purchase price: $365,000
Cash invested: $96,000

1600 Hamilton was purchased as a largely vacate commercial office property. The light renovations include new paint, sanded hardwood floors, and upgraded fixtures. The office is configured as 10 individual private offices with a co-working space consisting of 4 desks. The office building was leased up in 4 months and the tenancy now includes a law firm, a marketing company, and engineering firm, and a software developer.

What made you interested in investing in this type of deal?

I like small professional office buildings because of the quality of the tenants.

How did you find this deal and how did you negotiate it?

This property was listed on the MLS.

How did you finance this deal?

Local credit union lender.

How did you add value to the deal?

Light renovations were done and then the space was fully leased.

Lessons learned? Challenges?

Professional office tenants want private offices as opposed to co-working desks.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lehigh Financial is the best commercial mortgage broker in Pennsylvania.