Denholtz Properties Acquires Lehigh Valley Portfolio

Denholtz Properties has acquired an 18-building Lehigh Valley industrial portfolio. Image courtesy of Denholtz Properties

Denholtz Properties has expanded its Pennsylvania industrial footprint with the acquisition of an 18-building Lehigh Valley portfolio from PennCap Properties. CBRE’s Brad Ruppel and Tristan Cade represented the seller in the transaction.

The property collection totals 723,734 square feet and includes assets across Allentown and Bethlehem, Pa. In Bethlehem, the portfolio’s largest property at 57 S. Commerce Way offers 15 dock doors and eight drive-ins in a 76,400-square-foot, single-story multi-tenant industrial building. The portfolio also includes 2202 Hangar Place, a 66,495-square-foot industrial building that has direct hangar access to Lehigh Valley International Airport and offers nine dock doors and two drive-ins.

The properties are in infill locations along Route 22, within Pennsylvania’s I-78/I-81 Corridor. The industrial buildings offer tenants connectivity to the rest of the Lehigh Valley market, as well as the Philadelphia and New York City metros. With its prime location, the portfolio has attracted a diverse roster of notable tenants, including Tyber Medical, B Braun Medical, Mack Trucks and Trugreen.

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Mark Mahasky, director of acquisitions and capital transactions at Denholtz Properties, told Commercial Property Executive that the firm will use its market knowledge and efficient costing for tenant fit-ups to maximize occupancy throughout the portfolio. Mahasky also told CPE that Denholtz Properties will look for opportunities to deploy capital into strategic improvements.

Expanding the Lehigh Valley footprint

Denholtz Properties’ latest acquisition adds to its joint venture efforts to acquire and develop multi-tenant industrial properties across the U.S. Prior to the transaction, Denholtz Properties had already established its presence in the Lehigh Valley, with the acquisition of two warehouse assets in the submarket. The firm is the longtime owner of 969 Postal Road, a 163,496-square-foot industrial facility in Allentown, Pa., and 7036 Snowdrift Road, a 96,235-square-foot industrial facility in Upper Macungie Township, Pa.

Overall, Denholtz Properties currently manages a 6.8 million-square-foot portfolio across the country, including industrial, office, retail and multifamily properties. Outside its Pennsylvania industrial footprint, the firm partnered with Atkins Cos. to acquire a 490,000-square-foot health-care facility in Chappaqua, N.Y., in April.