West Shore flex building sells for $1.625M, to be company HQ

The 19,920-square-foot flex building at 6375 Basehore Road in Mechanicsburg has been sold for $1.625 million, announced Campbell Commercial Real Estate Inc.

Owned by Green Ridge Leasing LLC, it has been purchased by Basehore Holdings LLC.

After extensive renovations, Refresh LED intends to occupy the vacant space in the Hampden Township building for its new headquarters. Refresh LED is a faith-based company specializing in the manufacturing and installation of LED screens for churches and universities nationwide. The business was represented by Nick Martin, of Landmark Commercial Realty.

The seller was represented by Larry Kostelac and Art Campbell, of Campbell Commercial Real Estate.

Paula Wolf is a freelance writer

West Shore retail center sells for millions

The Shoppes of Hampden, a 40,000-square-foot retail center at 3608-3760 Market St., Hampden Township, has been sold to Tenny Group Properties LLC.

BizNewsPA reported that the purchase price was $5 million, and the seller was The Shoppes of Hampden LP.

A commercial real estate listing for the strip mall, near Conodoguinet Creek, said traffic averages more than 14,400 vehicles per day in both directions of Market Street.

Tenants at the West Shore property include UPMC Children’s Community Pediatrics, Fine Wine & Good Spirits (state liquor store), Elements Hairology, Elola Halal Mediterranean Grocery and 3700 Market Restaurant.

NAI CIR’s Craig Rahn and Chris Wilsbach handled the off-market transaction.

Paula Wolf is a freelance writer

Auto center specializing in European cars opens in York

Rock Commercial Real Estate announced that Cockeysville, Maryland-based Hunt Valley EuroCar has opened a second service center, at 1349-1355 S. George St., Spring Garden Township.

The new location – York EuroCar- is a 5,200-square-foot commercial building purchased for $643,000. Kevin Hodge, brokerage adviser at Rock Commercial, represented York EuroCar in the transaction.

“York EuroCar performs all services using highly skilled factory-trained technicians specializing in high-end European automobile car service, maintenance and repair with the latest automotive diagnostic equipment,” a release said.

Among the types of vehicles they specialize in are Jaguar, Land Rover, Volkswagen, Porsche, Audi, Mercedes Benz, BMW and Bentley.

“We service all late model import and domestic cars as well as classic automobiles,” York EuroCar added.

Brendan O’Rourke, president of York EuroCar, said: “We saw an opportunity to offer customized service for European cars in the growing York market.”

Hodge noted, “We were happy to help Brendan find a building that could be adapted for automotive repair and in a location that matched his target customers based upon a demographic analysis.”

Paula Wolf is a freelance writer

Rock Commercial Real Estate completes $11M in Q2 sales

Rock Commercial Real Estate, which has offices in York and Lancaster, completed $11 million in sales transactions in the second quarter of 2023.

Its 101 overall transactions during those three months also included 700,000 square feet in leases.

Among the sale highlights:

· Rexroth TIC purchased 130 Leader Heights Road, York Township, from Robert B. and Wanda D. Filer for $1.675 million. Rock Commercial’s Jason Turnbull and David L. Bode brokered the transaction.

· Samuel Bros. Realty B LP purchased 216 E. State St., Bald Eagle Township, from Kennett Library for $1.5 million. Rock Commercial’s John O. Birkeland represented the buyer.

· Hanover Real Estate Partners LP purchased 425 Poplar St., Hanover, from Robert D. Crawford Jr. and Thomas A. Crawford for $1.358 million. Rock Commercial’s Turnbull and Nate Resh represented the seller.

Among the second-quarter lease highlights:

· Lexora Inc. leased 70,000 square feet of industrial space at 145 Morgan Lane, Manchester Township, from 3625 Mia Brae LP. Turnbull represented the landlord.

· Prestige Auto Spa & Coatings LLC leased a 6,000-square-foot showroom with warehouse at 960 North Hills Road, Springettsbury Township, from AYL LLC and SHL LLC. Rock Commercial’s Damian Reed represented the landlord.

· Blessings of Hope leased 1,200 square feet of flex/office space at 3156-3164 Oregon Pike, Manheim Township, from Richard S. Martin. Rock Commercial’s Patten Mills brokered the transaction.

Paula Wolf is a freelance writer

Rock commercial real estate closes $5.3m in sales in Q1

Rock Commercial Real Estate, which has offices in York and Lancaster, completed 132 transactions in the first quarter of 2023, totaling $5.3 million in sales and 652,000 in leased square feet.

Sales included:

· Diehl & Sons Enterprises LLC purchasing 207-209 S. Sumner St., York, from Rexroth TIC for $940,000. Jason Turnbull brokered the transaction.

· Energywise Property Holding LLC purchasing 11505 Susquehanna Trail South, Shrewsbury Township, from Shrewsbury Township for $840,000. Kevin Hodge and Jason Turnbull represented the seller.

· District Lodge 98 IAMAW purchasing 5615-5619 Susquehanna Trail North, Conewago Township, from MUCDUC LLC for $460,000. Ben Bode represented the seller.

Rock’s Q1 lease transactions included: · Red Lion Controls Inc. leasing 71,030 square feet of industrial space at 15-105 Willow Springs Circle, Manchester Township, from Willow Springs Partnership LP. Jason Turnbull brokered the transaction. · Tobacco Hut Wilkes-Barre Inc. leasing a 6,820-square-foot freestanding retail building at 1022 Highway 315, Plains Township (Wilkes-Barre), from Ja-Va Inc. John O. Birkeland represented the tenant. · Milagro House leasing 1,069 square feet of office space at 941 Wheatland Ave., Lancaster, from Wheatland Place Associates LLC. Patten Mills brokered the transaction.

Paula Wolf is a freelance writer

Shipley Energy in York takes steps to offset carbon footprint

Envision pulling into a gas station and having the option to get a car wash with your order, use your reward points, or offset your car emissions for an additional 10 cents a gallon. 

Society may not have reached that point yet, but that day is likely to come sooner rather than later. 

“I imagine it is probably going to be something that’s pretty standard in the future,” said Joshua Rode, General Manager of Marketing of Shipley Energy in York. “We have made that pitch to a couple of our larger customers and there are talks of rolling that out in the near future.” 

A locally owned provider of home heating energy, including electricity, gas, oil, and propane, Shipley Energy was founded in 1929. The company also installs and services air conditioning equipment, heating, and ventilation. 

Last year, Shipley Energy launched Net Zero Carbon Diesel Fuel, an innovative way for consumers and companies to reduce their carbon footprint and reach sustainability levels. Rode said support for this came about when environmental sustainability and stewardship goals started to hit the mainstream as one of the top priorities for organizations across the nation, and corporate America started making sustainability goals for themselves and began asking suppliers to do the same. 

Net Zero Carbon Diesel Fuel is a way to reduce the emissions impact of diesel fuel, and do it in a way that is effective, inexpensive, and quick. 

“One way we can get to those goals and help customers get to those goals is by offsetting the carbon that a gallon of fuel produces,” said Rode. “We’re still selling the same gallon of diesel fuel, but we’re giving our customers the option of 10 cents a gallon to offset the carbon that gallon of fuel will produce once it’s burned. 

“We’re essentially offering a net zero carbon product while still utilizing the infrastructure we have in this country and in this state for the traditional fuels industry, which is pretty robust.” 

In essence, combining two different assets, two different commodities, a carbon offset and a gallon of fuel and creating something new that hasn’t been done or hasn’t taken off yet in the industry. 

Carbon offset is a subsidy for a project that takes carbon out of the atmosphere or reduces carbon emissions. It measures the amount of CO2 prevented or removed from entering the air. While one gallon of diesel fuel burned emits 22.16 pounds of CO2, one carbon credit offsets 99.5 gallons of diesel fuel burned. 

Rode said Shipley Energy was looking into doing carbon offset themselves but acquired the solution in December 2021. The official first year of launch was in 2022. Shipley Energy acquired 1,709 carbon offsets, which reduced about 3.76 million pounds of carbon dioxide equivalence, or the equivalent emission of 4.5 million vehicle miles travelled. 

Net Zero Carbon Diesel Fuel works in the following manner: 

  • Carbon emissions by a business’s diesel fuel usage is calculated. 
  • Certified carbon offsets are purchased to match the business’s emissions. 
  • The offsets are retired. 


Rode said that if one is voluntarily buying offset credits as Shipley is, they’re funding a landfill, wind power, or improved forest management project that is taking carbon out of the atmosphere or replacing practices or production that used to be carbon intensive to something less carbon intensive. 

“Essentially it’s a voluntary subsidy from a not so renewable industry like diesel and gas, to help lift projects that are more sustainable and do help offset the carbon intensity of our industry,” said Rode. “Another option for the future is for Shipley to invest in its own projects that would offset carbon and take out the need for us to buy third-party carbon offsets. But we haven’t gotten to that point yet.” 

The past year has seen carbon credits double in price, meaning they’re becoming a very popular form of offsetting carbon footprint. The question is, will costs keep rising for these projects which incentivize new projects to be built and bigger scale projects to be built? Rode remarked that the whole point of the carbon market is to incentivize the building of newer, bigger, better projects. 

“Right now, we’re seeing a lot of the US projects become more expensive, and projects in Central and South America, China, and elsewhere become cheaper options,” said Rode. “We’re committed to trying to keep our offsets in the Americas, specifically US-based carbon offsets, if we can. If that becomes price prohibitive, we’re looking for projects in Central and South America that are energy-based.” 

Rode noted that the credits Shipley is purchasing are verified by the Climate Action Reserve, which is a widely accepted standard in the industry.  

“One thing about carbon offsets is that it’s like the wild west out there, to use an analogy,” said Rode. “You can get scammed if you’re not buying from the right entity.” 

Rode said Shipley Energy’s launch of Net Zero Carbon Diesel Fuel is a matter of “stepping out and doing things our competitors aren’t doing, helping our customers succeed in their endeavors, and adding to the purchasing options thar we offer to our customer base, which is pretty diverse. 

“Our goal is business to business, help our wholesale and commercial customers offset their carbon footprint.”

‘Medtail’ trending as more medical services use retail spaces

Last August the former home of Good ‘N Plenty restaurant in Ronks was purchased by Well Spring Care to be converted into a 24/7 medical clinic for the Amish.

The deal was a high-profile example of an increasingly common trend.

More than ever, medical services are leasing or buying traditional retail spaces, a special real estate category known as “medtail.” These locations are attractive to tenants because of foot traffic, visibility and convenience, and landlords like the long-term leases medical users sign.

A blog post on the topic at Rock Commercial Real Estate cited research from CoStar Group that indicated about 20% of leased medical space was in retail buildings in 2022, an increase from about 16% in 2010. A survey conducted by ICSC, a trade group representing owners of these properties, found in 2020 that almost seven in 10 adults in the U.S. were visiting a health care provider – whether urgent care or some other type of medical facility – in a shopping center, indoor mall or outdoor strip mall.

The Rock article noted that retail vacancy climbed during the COVID-19 pandemic as business owners started moving inventory online and away from brick-and-mortar locations. In 2020, retail vacancy in York County hung around 8% three-quarters of the year. With rents dropping as a consequence, opportunities grew.

Medical facilities’ leasing retail spaces is often seen as a win-win for tenants and landlords. Tenants gain access to high visibility and increased consumer foot traffic, while landlords know health care providers normally bring employed, insured patients who will spend at surrounding retailers. By eating lunch after an appointment, for instance.

Landlords also are partial to the normally long-term leases medical tenants sign, leases unaffected by economic downturns. The Rock post noted as well that medical tenants tend to have a higher success rate than restaurants and other retailers.

Another factor in medtail is the depressed office vacancy rate, hampered by minimal new construction. Rock Managing Partner David Bode explained in the blog post, “The evolution of medical transitioning into available retail facilities makes sense, especially with the very low vacancy rate in the office market. Medtail tenants receive the added benefits of better visibility, higher traffic counts, and moving into areas with greater concentration of residents.”

In a follow-up call, Bode said central Pennsylvania was different from major metro areas in having a lack of office inventory.

People today want convenience, he said, and they’re likely to head to an urgent care, a common example of medtail.

The cost to build a medical facility also drives providers to seek retail answers, in malls or elsewhere, Bode said.

In addition to Well Spring Care, the Rock blog post lists several other medtail projects, including 30,000 square feet leased by WellSpan Health Services at Queensgate Towne Center in York. The space was previously a Habitat for Humanity ReStore.

And Exeter Orthodontics signed a five-year lease for about 2,000 square feet in Millersville Commons, a retail strip center, while Drayer Physical Therapy leased about 1,700 square feet in Cloister Shopping Center, Ephrata.

Brad Rorabaugh, executive vice president of Bennett Williams Commercial, said it’s almost normal to have a medical provider – dentist, physical therapist, chiropractor, urgent care, etc. – in everyday shopping centers.

A recent one is Blue Mountain Veterinary Care, which opened in Forest Hills Commons, Harrisburg.

He said one advantage is that medtail providers are often more visible from the road than they would be in an office building.

The foot traffic, street signage and synergy with the other tenants “are ideal for them,” Rorabaugh said.

Powell Arms, senior vice president and managing director of retail for High Real Estate Group, said medtail is much more common these days.

He defines the trend as tending toward providers who do elective procedures, like cosmetic surgery, where the patients don’t pay with insurance and have discretionary money to spend. Both tenant and landlord like the foot traffic a retail space can offer a medical provider, which has the potential to benefit all the businesses in the shopping center.

Several medical services are interested in the retail section in Lancaster County’s The Crossings at Conestoga Creek, for example, he said.

“We are seeing a lot of it,” Arms said. “It’s a great, growing category of retail.”

Paula Wolf is a freelance writer

Harrisburg home to 2 of the priciest industrial sales of 2022

Who says big deals don’t get done in Harrisburg?

In 2022, two of the nation’s 50 priciest industrial property transactions were in the vicinity of the state’s capital. That data comes courtesy of the newest report from CommercialSearch.

Harrisburg’s $193 million portfolio sale of the Capital Logistics Center ranked 16th among the nation’s most expensive industrial deals from last year. The 1,288,690-square-foot property, consisting of three buildings, was sold May 18 by Link Logistics to CBRE Investment Management for roughly $150 per square foot.

Also ranking among 2022’s priciest U.S. industrial transactions was the $167 million sale of the 3000 State Drive building. The 970,000-square-foot property – ranked 24th on the list – was sold March 28 for $172 per square foot by DHL Supply Chain to CPUS LEBANON LP.

Pennsylvania accounts for the second-largest group of deals by state, with seven of the top 50 sales. California accounts for the largest group, with 16.

Paula Wolf is a freelance writer

$16M in Q4 sales, Rock Commercial Real Estate reports

Rock Commercial Real Estate, with offices in York and Lancaster, reported $16 million in sales transactions and 435,234 square feet in lease transactions in the fourth quarter of 2022.

Sale highlights included:

· Moove In Land & Cattle Co. LLC purchased 316-320 N. George St., York, from Kinsley Northwest LP for $5.075 million. Rock Commercial brokered the transaction.

· East Prospect Road Partners LLC purchased 3200-3202 E. Prospect Road, Windsor Township, from the International Association of Machinists and Aerospace Works Trustees for $1.05 million. Rock Commercial represented the buyer.

· Lehigh Valley Health Network Realty Holding Co. purchased 1328 Golden Slipper Road, Pocono Township, from E. Frank Buck Jr. for $4.6 million. Rock Commercial represented the seller.

Lease highlights included:

· Pro Pallet LLC leased 23,361 square feet of industrial space at 1160 Fahs St., West Manchester Township, from Fahs Street Properties LLC. Rock Commercial brokered the transaction.

· Lancaster General Medical Group leased the 15,710 square-foot office building at 3045 Marietta Ave., East Hempfield Township, from David and Rebecca Fuchs. Rock Commercial brokered the transaction.

· Tobacco Hut Lancaster 1 Inc. leased 6,250 square feet of retail space at 1400 Manheim Pike, Manheim Township, from Barstools & Billiards Inc. Rock Commercial represented the tenant.

Paula Wolf is a freelance writer

Office, retail sectors in Lancaster’s commercial RE market surprisingly busy

While industrial sales volume has fallen to pre-pandemic levels in the Lancaster County commercial real estate market, office and retail activity are surprisingly strong.

That’s the picture painted in Rock Commercial Real Estate’s third-quarter report, which covers different market sectors.

Mostly tied to consumer spending, the industrial segment is still busy, said Drew Steffens, Rock’s director of data services.

Lack of inventory continues to drive down vacancy and increase lease rates, the report noted. Warehousing demand, powered by e-commerce, continues to outpace supply, with over 400,000 square feet absorbed through the first three quarters.

In Lancaster County, 1.59 million square feet of industrial space is under construction, 1.13 million of which is expected to be completed in the second quarter of 2023. Meanwhile, 1.17 million square feet of space is proposed.

After unprecedented sales activity in 2021, total sales volume has decreased 71% compared with last year, while the average sale price has declined 40%.

One major sale last quarter was 150,842 square feet at 215 Diller Ave., New Holland, which was sold by Birch Real Estate of PA LLC to SM Diller LLC for $8.25 million.

The report said that demand for warehousing is projected to remain elevated. However, inventory is scarce, with lease rates across Class A and B approaching $8 per square foot.

Asking rates are averaging $8.95 per square foot, and Class A new construction is asking upwards of $9.50 per square foot.

Sixty percent of active construction projects in Lancaster County are for units from 100,000 to 300,000 square feet. In addition, 900,000 square feet in this size range is in the pipeline.

In the Lancaster County office market, “it’s been pretty steady, despite everything pushing against it,” Steffens said.

Because office space isn’t being built on speculation, renters are waiting for opportunities, he explained.

Vacancy is declining and lease rates continue to tick upward. Though total leased square feet year over year has been declining since the second quarter of 2020, when the pandemic hit hard, leased square feet is on pace to match or exceed last year’s total.

Following completion of the Penn State Health Lancaster Medical Center (341,000 square feet) in East Hempfield Township, active office construction remains minimal, the report said. However, more than 324,000 square feet of space is proposed, including 84,000 square feet at CityGate Corporate Center and 26,000 square feet at Stony Battery Business Center.

On the Lancaster County retail side, “that continues to surprise us,” Steffens said. The expectation is that consumer spending will pull back, but it “just keeps going.”

Sales revenue through three quarters is already 97.8% of last year’s figure, which is a testament to investors still seeing value, he explained.

Vacancy is now below 3%, the report said. “Positive absorption illustrates a continued demand for retail space despite economic headwinds.”

Shopping center leasing remains active, with vacancy 119 basis points below the national average.

Also, the average retail sale price in Lancaster County has doubled since 2017.

Key sales transactions include 150 Eastbrook Road, Ronks, and 715 Fairview Ave., Lancaster. The 18,712-square-foot Eastbrook Road property, the former Good ‘N Plenty Restaurant, will be converted into a medical center serving the Amish community.

The 6,400-square-foot former AMVETS home on Fairview Avenue will be redeveloped into an ambulance dispatch center for Lancaster EMS.

Paula Wolf is a freelance writer

Harrisburg property to be converted from commercial to residential

Formerly a mixed-use building and the home of the popular Capital Joe Coffee shop, the 3,728-square foot property at 416-418 Foster St. in Harrisburg has been sold.

The commercial property will be converted into a single-family residential home. 

Chris Wilsbach of NAI CIR represented the seller in the real estate business transaction.

Steelton’s Steel Works project takes the next step

Now that the tenant placement portion has finished at Steel Works, an Integrated Development Partners’ mixed-use project in Steelton, Hamilton Health Center will begin construction on its new facility, and IDP has broken ground on The Steelworks Apartments, 46 units that will open in late spring of 2023.

Hamilton Health Center was the final tenant and closed on its space in August.

“When Integrated Development Partners first purchased the property, we conducted a needs assessment,” IDP Managing Partner Jonathan Bowser said in a release. “Since I was born and raised in the area – along with four to five generations of my family – we had an idea of what types of businesses were needed.”

In 2018, Chuck Heller and Sean Fitzsimmons of Landmark Commercial Realty were tasked with marketing the 102,000-square-foot mixed-use development project to secure retail or office users to lease or buy space.

In addition to Hamilton Health Center, which is expected to open toward the end of the first quarter of 2024, the project includes a Dollar General, a SeniorLIFE health care center, The Steelworks Apartments, an amphitheater, and a park named after Bowser’s grandfather.

“We were excited to be selected to help revive Steelton’s Main Street corridor as the project’s exclusive listing agent,” added Chuck Heller, executive vice president with Landmark. “The project was one of the first for IDP as a company. We were honored to be chosen to take on the job but knew it was no small feat as it was a 6-acre blank canvas.”

Paula Wolf is a freelance writer