For Sale
$6,511,000

137 2Nd St Erie, PA 16507

Prime Erie location, strong tenant.

Overview

Added:
Dec 11, 2024
Days on market:
134
This exceptional investment opportunity presents a 44,834 square foot Class A medical office building in Erie, Pennsylvania. The property boasts a 100% occupancy rate with a single, credit-rated tenant: the Commonwealth of Pennsylvania, Department of Corrections, under a gross lease with a remaining term of 14.3 years (expiring March 14, 2039). The lease commenced November 1, 2003, and includes annual rent increases of 2.50%, providing a hedge against inflation. The building, constructed in 1972 and renovated in 2003, features three stories and sits on a 1.4-acre lot. The asking price is $6,511,000, representing a 7.66% cap rate and a price per square foot of $145. The property generates a substantial net operating income (NOI) of $498,953. Additional income streams are derived from a parking lot lease with UPMC Hamot Medical Center (extending to 2029) and laundry services. The strategic downtown Erie location offers proximity to major employers like UPMC Hamot Hospital and Erie Insurance, as well as significant tourist attractions and a large regional population. The tenant has a long history at this location and recently extended their lease, demonstrating a strong commitment. Two, five-year lease options are available. The property is fee simple ownership and the APN is 17-040-006.0-212.00. This is a rare opportunity to acquire a stabilized, government-backed investment with significant long-term potential.

Highlights

  • Investment-grade credit tenant: Commonwealth of Pennsylvania, Department of Corrections (AA/Aa3 rating).
  • Long-term lease: 15-year extension with a strong, 20+ year history at this location.
  • Inflation-resistant lease: 2.5% annual rent increases.
  • Additional income streams: Parking lot lease with UPMC Hamot (extending to 2029) and laundry services.
  • State-operated correctional facility: Erie Community Corrections Center, one of 12 in Pennsylvania, serving a large regional population.
  • Prime downtown Erie location: High population density (±140,000 within 5 miles), near major employers (UPMC Hamot, Erie Insurance), entertainment venues, and the bayfront.

Property Details for 137 2Nd St

Property type
Specialty properties, Retail properties
Square Feet
44,834 SF
Class
A
Year Built/Renovated
1972/2003
Buildings
1
Stories
3
Lot Size (sq. ft)
60,984 SF

Location Insight

City
Erie
County
Erie
State
Pennsylvania
Latitude
42.1317308
Longitude
-80.0901456

FAQs

What type of property is this?
Specialty property - Prime Erie location, strong tenant.
Where is the specialty property located?
The property is located at 137 2Nd St Erie, PA.
What is the asking price?
The asking price for this property is $6,511,000.
What are key features of this property?
This property features: Investment-grade credit tenant: Commonwealth of Pennsylvania, Department of Corrections (AA/Aa3 rating).; Long-term lease: 15-year extension with a strong, 20+ year history at this location.; Inflation-resistant lease: 2.5% annual rent increases.
How can I contact the broker?
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137 2Nd St
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