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On the market: Three-story Susquehanna Township office building available for $15M

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A large three-story office building off Progress Avenue in Susquehanna Township has hit the market for $15 million.

Dallas-based Holliday Fenoglio Fowler LP, or HFF, has listed 2400 Thea Drive on behalf of its New York-based owner, iStar Inc., a real estate investment trust. The 202,833-square-foot office building was anchored by international technology company DST Health Solutions, which closed its office in 2016.

Following DST's departure, the facility is 51 percent occupied. National Government Services, which is part of health benefits company Anthem Inc., and construction materials company Pennsy Supply now anchor the building.

Brett Segal, managing director for HFF in Philadelphia, said iStar is looking to sell to investors interested in leasing up the rest of the building. The open floor plan of the building, including a fully vacant second floor, provides ample opportunities to fit out the space for several small- and mid-sized tenants.

"We think there is a significant Harrisburg investor pool, as well as regional and national operators, who are looking for value-add opportunities and are searching for yield," he said. "We expect groups that have holdings in Pittsburgh and Philadelphia, who are getting priced out, to take a run at it."

The Thea Drive facility was built in 1997 for Synertech by the late Harrisburg-area developer John Vartan. Synertech, a provider of information technology and outsourcing for the health care industry, started as KHP Services and was owned by Highmark.

Over the years, the company changed hands a few times. A private-equity firm acquired it in 1998. In 2003, it became known as Amisys Synertech after another deal. DST then acquired the company in 2006.

iStar has owned the property since 2001, according to Dauphin County property records. It purchased the building for $26.8 million.

Over the years, the company has spent a significant amount of money reinvesting in the building, Segal said, citing new roofs and HVAC upgrades, as well as a renovated lobby.

Most of the recent office projects in the Harrisburg area have been build-to-suit developments — projects undertaken with a tenant in mind. With limited construction of other office space, Segal said he expects to see high interest in this building.

The property sits on more than 10.6 acres and has more than 1,000 parking spots.

"It's a significant piece of property," Segal said.

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Jason Scott

Jason Scott

Jason Scott covers state government, real estate and construction, media and marketing, and Dauphin and Cumberland counties. Have a tip or question for him? Email him at jscott@cpbj.com. Follow him on Twitter, @JScottJournal.

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Glenn November 1, 2018 12:55 pm

We know that it is a significant piece of property like any other company like ours in greenville concrete but is it fair that they sell it for $15M? Really, I want to email them and ask why.

Dianne November 1, 2018 12:45 pm

Woa! $15M? Well, for a property that sits on more than 10.6 acres and has more than 1,000 parking spots they deserve that demand!
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