Overview
Avison Young is pleased to offer 343 Godshall Drive (the ”Property”) for sale to qualified investors. Located in the Godshall Drive Industrial Park in West Montgomery County, the Property is situated on 6.01 acres and consists of 56,654 square feet. 343 Godshall Drive is currently 100% leased to five tenants with a weighted average lease term of 3.85 years. The property is equipped with three drive-in doors and three dock doors, granting loading access to every tenant in the building. Additionally, the property boasts an impressive parking ratio of 3.69 parking spaces per 1,000 square feet of building area, compared to 1.81 parking spaces per 1,000 square feet of building area found in the rest of the Godshall Drive Industrial Park. The current tenant base occupying 343 Godshall Drive has a large parking requirement as they distribute to and service the surrounding regions, with few competitive properties able to meet their parking needs.
Originally built in 1970, the property has experienced continued capital investment to meet the demands of the next ownership group. The building is fully conditioned and has a new 1,200 amp, 3-phase electric transformer. Although the building has a mix of industrial and flex tenants that are committed to their spaces and have paid for significant tenant improvements, as evidenced by AMETEK’s 48 years of tenure, the building offers downside protection through demoing the current office fitout and returning the building to full industrial use. There are 18’ clear heights in the majority of the building. The weighted average rental rate in the building is currently $10.72/ NNN, while market rents are $11.00/NNN - $14.00/NNN for flex/industrial space.
The property is strategically located off Main Street in Harleysville, less than two miles from I-476 at the Lansdale Interchange of the PA Turnpike. The premier location offers visibility from Godshall Drive, Main Street, and Ruth Road, with a daily car count of over 21,640 vehicles per day. 343 Godshall Drive’s centralized location grants easy access to Philadelphia, Northeastern PA, Southern New Jersey, and New York City. The property’s premier accessibility and buildings specs have attracted tenants that service the Philadelphia and northeast region, including AMETEK, Inc., HB Home Services (the home division of HB Global, LLC), and Kieffer’s Appliances.
Investment Highlights
Below Market In-Place Rents
343 Godshall Drive represents a value-add opportunity for investors by bringing in-place rents to market. The average NNN rental rate within the building is $10.72/NNN. Market rate industrial leases are being executed at $11.00/NNN - $14.00/NNN, while office leases are being executed at $16.00/NNN to $19.00/NNN.
Demand Drivers
343 Godshall Drive’s building characteristics help make it one of the most in demand buildings in the area. The property is in the Godshall Drive Industrial Park, and benefits from being the best located building in the park, with visibility from both Main Street and Ruth Road, combining for a traffic count of over 21,640 vehicles per day. Additionally, 343 Godshall Drive boasts an impressive parking ratio of 3.69 spaces per 1,000 square feet of building space, which is significantly higher than market averages, which tend to be between one and two spaces per 1,000 square feet. This is a key metric for the current tenant base due to their need for centralized location and high parking demand.
The property’s centralized location, high parking ratio, and 18’ clear height ceilings have played a large part in the stickiness of the tenant pool, namely AMETEK’s 48 years of tenure at the building. AMETEK’s industrial space includes roughly 6,000 square feet of mezzanine space that is not currently included in their rental payment, which further solidifies them as a long-term tenant. Avison Young did not include this additional mezzanine space in our underwritten leasing assumptions.
Location & Accessibility
Located in the West Montgomery County industrial submarket, less than two miles from I-476, the property grants easy access to Philadelphia, Southern New Jersey, New York City, and Northeastern Pennsylvania. 343 Godshall Drive is situated in one of the most active industrial/flex corridors on the east coast, 30 miles from Center City Philadelphia, 46 miles from Wilmington, DE, and 104 miles from New York City. 343 Godshall Drive’s location continues to drive tenant demand as each of the current tenants distributes to and/or services the surrounding region. Within five miles of the property, flex/industrial rental rates have increase 20.1% over the past three years, while the market vacancy rate is 1.2%.
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