The Ronald Reagan Federal Building and U.S. Courthouse in Harrisburg has sold again, this time for more than $13 million.
Sean Beuche, regional manager of Marcus & Millichap’s Philadelphia office, said 251,179-square-foot Federal Building located at 228 Walnut St. was sold last week.
“This is one of the most meticulous transactions we have ever worked on due to the nature of working with the General Services Administration (GSA) and the federal government. It was a pleasure to work with the tenants and buyers of the building, and we are looking forward to seeing his vision becoming a reality, while improving the downtown district of Harrisburg,” said Mher Vartanian, vice president investments.
Craig Dunkle, Jackson Day, and Mher Vartanian of Marcus & Millichap’s Philadelphia office had the exclusive listing to market the property on behalf of the seller, R.R.F Building LLC of 1320 Elder Avenue, Bronx, New York, which paid $10.1 million. The buyer, a limited liability company, was secured and represented by Craig Dunkle and Mher Vartanian.
“From the initial phases of marketing this property, we were very involved in the overhaul of designing and planning the repositioning of this property to condominiums and residential apartments. We worked through, planned, and designed with this mixed-use developer and are continuing to work with this developer post-closing to make this vision come to fruition for the client. We are thrilled to see this project coming to life,” said Dunkle, senior vice president investments.
The sale is a reservation agreement, Dunkle said, meaning the federal government maintains possession until all offices are moved to the new Sylia H. Rambo Federal Courthouse at 6th and Reily Streets.
Dunkle said not all of the federal offices have been vacated to date. Some judges are in the process and, he said, the IRS and the Postal Service offices are still open due to tax season.
The property originally went up for bid in September 2021 with an opening bid of $3 million. At the time, the GSA said it was selling the 11-story building ahead of the construction of its new 243,000-square-foot courthouse.
The Harrisburg courthouse was built in 1966 and sits across from the city’s Strawberry Square and the Pennsylvania State Capitol Complex.
The listing referred to the property as a redevelopment opportunity, noting its location in the city, access to 55 parking spaces and its location in a Qualified Opportunity Zone.
The building was sold in February 2022 to R.R.F Building.
Just a few days later, the building went back up for sale for $22 million on commercial real estate site LoopNet.
The listing, naming the property “The Federal,” called it “the most prominent building on the most important corner of CBD Harrisburg.”
The listing said the property presented an ideal residential development opportunity, noting that the site is eligible for a 10-year tax abatement on any improvements and is located in an Opportunity Zone.