Here are 7 of the Lehigh Valley’s biggest commercial real estate deals in 2022 – The Morning Call

As land is developed and redeveloped in the Lehigh Valley, ownership of those parcels continued to change in 2022.

According to the latest Lehigh Valley Economic Development Corp. commercial real estate report, the Valley has a record-low vacancy rate of 3.8% among 145 million square feet in industrial real estate. About 6.4 million square feet is under construction.

The average asking rent is $8.70 per square foot, a rise of 7% over the year.

The vacancy rate for office space is 7.9% as that market segment continues to recover from the COVID pandemic. There is 28.5 million square feet of space in the Valley, with 138,305 square feet under construction. The average asking rent is $15.74 per square foot, down 1.4% from last year.

“Lehigh Valley manufacturers are driving innovations in the life sciences, food production, high-tech sectors and more because of our location, talent and other resources,” LVEDC President & CEO Don Cunningham said in the report. “It’s no wonder we’re seeing strong interest from manufacturers who want to be a part of that in the Lehigh Valley.”

Here are some of the more notable transactions during 2022:

Sales price: $96.7 million

Buyer: Riff Easton Rd Spe LLC

Seller: SDC Bethlehem Property LLC

Background: The 44.98-acre parking and maintenance facility in Lehigh Valley Industrial Park VII is adjacent to a railroad freight yard.

“The Lehigh Valley is a premier regional distribution location that enables users to service the northeast United States,” said Ben Andreycak, vice president of east region acquisitions at Realterm. “There are limited opportunities to acquire high-flow-through assets in the region, making this property a strong addition to our portfolio.”

Realterm is an independent global investment manager focused on the transportation industry that manages over $13 billion in assets, according to its website.

Sales price: $60 million

Buyer: Carson Van Buren LLC, Carson Real Estate Trust

Seller: Chrin Trust DST, Chrin, Gregory Raymond

Background: This 95-acre parcel in the massive Chrin Commerce Centre could eventually hold up to five warehouses.

According to township Planning Director Cynthia Carman Kramer, Carson will build five warehouses in two phases. The buildings will cover about 1.14 million square feet and take up one of two lots.

The second lot, facing Main Street, covers 18 acres and will feature retail. Kramer said Carson hired a retail developer for that property.

A stone farmhouse on the property was moved by Chrin to a nearby site during the summer.

Sales price: $32.5 million

Buyer: Riverside at Whitehall Holding LLC

Seller: 1788/Riverside Business Center LLC

Background: The light industrial building changed hands for the second time in four years, with the seller seeing a significant return on its investment.

The 423,900-square-foot Riverside Business Center is across the Lehigh River from Lehigh Valley International Airport. It was sold by Maryland-based 1788 Holdings LLC, which bought the property from Cafritz Interests in March 2018 for $11.65 million. With the new sales price, the property has increased in value about three times.

Larry J. Goodwin, principal for 1788 Holdings, said the company invested in the Riverside because it was a “high-class” Class B property with rents significantly below market. At the time of the sale, Goodwin said the company would invest in functional and aesthetic improvements that would build significant value.

Sales price: $19.9 million.

Buyer: Ridgeview Corporate Park LLC

Seller: Ridgeview Limited Parkers and Tcas Inc.

Background: The lot is empty, though it’s surrounded by other industrial buildings and a house along Hausman Road, which parallels Route 309 near its intersection with Route 22.

Sales price: $18 million

Buyer: MT Brunel LLC NY

Seller: Brighton Industrial LLC

Background: The industrial building in Fountain Hill, which formerly housed Reeb Millwork Corp., is a 235,000-square-foot-structure. A group tied to Reeb Millwork sold the building to SK Realty Management for about $8.4 million in 2018.

Sales price: $15.3 million

Buyer: LV Academy Regional Charter School

Seller: Fuller Co.

Background: Lehigh Valley Academy plans to move into the facility in 2023. The site is about three-quarters of a mile from LVA’s spot at 1560 Valley Center Park, Hanover Township, Northampton County.

The 1.83-acre lot holds a three-story, 210,000-square-foot building. A 25,200-square-foot gym will be added.

Sales price: $13.8 million

Buyer: 1801 12th St. LLC

Seller: Queen City Properties LP

Background: Three industrial properties in the South Side of Allentown, adjacent to the Lehigh Street corridor.

Morning Call reporter Evan Jones can be reached at ejones@mcall.com.