Linlo Properties pays nearly $10.3M for two Members 1st buildingsCredit union selling Rossmoyne buildings as it eyes future HQ move to Hampden Township
A Cumberland County office developer paid nearly $10.3 million to buy two of the four corporate office buildings owned by Members 1st Federal Credit Union in the Rossmoyne Business Center off Route 15.
East Pennsboro Township-based Linlo Properties, purchased the buildings at 4999 Louise Drive and 5053 Ritter Road for nearly $7.8 million and $2.5 million, respectively. The two buildings total about 77,000 square feet.
Linlo owns three neighboring buildings in the park, which straddles Lower Allen and Upper Allen townships.
The sales closed on Friday and are the first steps in Members 1st's plan to bring its corporate staff under one roof. Members 1st wants to build a new headquarters facility for about 500 associates, and is currently exploring a 23-acre property off Interstate 81 in Hampden Township.
As the process unfolds, Members 1st is leasing back a portion of the office buildings it sold to Linlo. The credit union shares office space in 4999 Louise Drive and 5053 Ritter Road with multiple tenants. The institution’s main administrative operations are located in buildings at 5000 and 5020 Louise Drive.
Linlo portfolio manager Sarah Gates described the deal as a win for both companies. Members 1st gets the short-term flexibility it needs as it crafts plans for a new headquarters, while Linlo is able to bolster its West Shore portfolio at a time when most of its available space in the area is leased up.
When Members 1st vacates the two buildings, Gates said she is confident Linlo will be able to attract new tenants to fill them. Members 1st has not released a timeline for deciding on a new headquarters.
“Those two buildings will have a very manageable vacancy,” Gates said.
Linlo also has properties in the nearby Westport Business Center.
“The buildings we have in that area are about 95 percent leased or fully leased,” Gates said. “We feel really good about everything we’re seeing in and around Rossmoyne.”
Linlo, which has the bulk of its commercial holdings in Cumberland and Dauphin counties, opened a new clinic in Rossmoyne last fall for the U.S. Department of Veterans Affairs, moving the VA from Camp Hill. The company has been eyeing other opportunities.
CBRE First Vice President Michael Curran was the sole broker in the transaction, negotiating on behalf of Linlo Properties.