Cumberland County firm spending up to $25M to redevelop former HP office
A Cumberland County real estate developer plans to spend up to $25 million to breathe new life into a large office building last occupied by technology giant Hewlett-Packard.
Landmark Commercial Realty Inc. on Monday said that Lower Allen Township-based Select Capital Commercial Properties Inc. has purchased the 215,000-square-foot property at 225 Grandview Ave. in East Pennsboro Township.
The vacant office building is near the Geisinger Holy Spirit campus and a major mixed-use redevelopment project taking shape off Erford Road. The purchase price was $2.5 million, according to county deed records.
Select Capital plans to redevelop the former HP home into Class A office space for high-end office tenants, said Jason Grace, senior vice president at Landmark. Grace negotiated the sale.
"I think what they saw in the vacant building is good bones," Grace said. "I think the proximity to the Capitol, the Camp Hill Bypass and the Geisinger campus are all things that are advantageous to redevelopment."
He said the goal would be five or six office tenants, citing the building's potential to attract public companies in need of regional operations space or private regional companies such as law firms.
An unnamed anchor tenant already has agreed to take up to a full floor of the building.
Select Capital is currently in the process of hiring an architect and general contractor for the project, Grace said. The building is expected to undergo a full-scale renovation, including a new roof and glass facade as well as possible expansion of the parking deck. The interior plans include new mechanical systems and modern office finishes throughout the building.
Landmark is marketing the project with the ability to sign leases with tenants as soon as early 2019. Grace said he expects the redeveloped property to be available for occupancy as early as the third quarter of 2019.
Select Capital is led by John Ortenzio. Over nearly two decades, the firm has redeveloped and renovated several office properties in Central Pennsylvania.
The company also developed Executive Park West, a nearly 300,000-square-foot office park off U.S. Route 15 in Lower Allen Township. A park expansion of 200,000 square feet is currently in the engineering and design phase.