PA Dept. of Conservation & Natural Resources 3240 Schoolhouse Rd

Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant office property leased to The Commonwealth of Pennsylvania - Department of Conservation and Natural Resources, (the “Property”) in Middletown, a borough located just outside of Harrisburg, the state capital of Pennsylvania. As a department within the Commonwealth of Pennsylvania (Moody’s: Aa3), The Department of Conservation and Natural Resources offers an investment grade credited Tenant. The mission of The Department of Conservation and Natural Resources is to conserve and sustain Pennsylvania’s natural resources for present and future generations’ use and enjoyment. The lease has just under 8 years of firm term remaining with a substantial 16.67% rental increase in 2027 on the Base Rent. The Additional Rent covers the costs of real estate taxes, utilities, trash removal, insurance, and janitorial services, and can be increased up to five percent (5%) year over year depending on the Consumer Price Index (CPI).
The PA Department of Conservation and Natural Resources first occupied a small portion of the building in 2001, and since then have grown over five lease amendments and now occupies 100% of the building. In 2022 they signed a new lease which included a rare fixed term of ten (10) years. Since 2017, at the request of the Tenant, the seller has invested over $1 million worth of capital expenses into the building, including but not limited to, HVAC updates, roof replacement with a 20-Year warranty, emergency generator, lighting upgrades, car charging stations, parking lot reseal and restripe. This includes an AV conference room which is utilized by multiple departments within the Commonwealth.
The property’s location is seconds from State Route 283 boasting 35,900 VPD and just under 9 miles from Downtown Harrisburg, the state capital of Pennsylvania. The property is within the Harrisburg, PA MSA that is home to a population of over 603,000 people, the fourth largest metro area in Pennsylvania. Additionally, the property is under three and one-half miles from Interstate Highway 76 which boasts 34,600 VPD and provides direct access east to Philadelphia, Pennsylvania and west to Akron, Ohio. Middletown is conveniently located in the southcentral region of Pennsylvania less than 100 miles from three major metro areas in the northeast. Baltimore is located just 63 miles south, Philadelphia is just 85 miles southeast, and Washington D.C. is located 92 miles south.
Companies such as FedEx and Hershey have their distribution and freight centers 2 miles from the property due to immediate access to major highways and proximity to the Harrisburg International Airport; a ten minute drive.
INVESTMENT GRADE CREDIT (MOODY’S: AA3) – As a department within the Commonwealth of Pennsylvania (Moody’s: Aa3), The Department of Conservation and Natural Resources offers an investment grade credited Tenant. The mission of The Department of Conservation and Natural Resources is to conserve and sustain Pennsylvania’s natural resources for present and future generations’ use and enjoyment.
SIGNIFICANT CAP EX IMPROVEMENTS – Since 2017, at the request of the Tenant, the seller has invested over $1 million worth of capital expenses into the building, including but not limited to, HVAC updates, Roof replacement with a 20-Year warranty, emergency generator, lighting upgrades, car charging stations, parking lot reseal and restripe. This includes an AV conference room which is utilized by multiple departments within the Commonwealth.
EXTREMELY “STICKY” TENANT – The Department of Conservation and Natural Resources started their Lease in 2001 with a portion of the building and has since grown into 100% of the building, which includes pallets and pallets of rocks which are kept and stored within the lower part of the building and would make any type of relocation extremely time consuming and costly.
RENTAL INCREASES – The Pennsylvania Department of Conservation and Natural Resources lease has just under 8 years of firm term remaining with a substantial 16.67% rental increase on 8/11/2027 on Base Rent. The Additional Rent covers the costs of real estate taxes, utilities, trash removal, insurance, and janitorial services, and can be increased up to five percent (5%) year over year depending on the Consumer Price Index (CPI).
HARRISBURG, PA MSA – The property is located just under 9 miles from Downtown Harrisburg, the state capital of Pennsylvania. The property is also located within the Harrisburg, PA MSA that is home to a population of over 603,000 people, the fourth largest metro area in Pennsylvania.
NEARBY MAJOR THOROUGHFARES – The property is located seconds from State Route 283 that boasts 35,900 VPD and under three and one-half miles from Interstate Highway 76 which boasts 34,600 VPD and provides direct access east to Philadelphia, Pennsylvania and west to Akron, Ohio.
CENTRAL LOCATION – Middletown is situated in the southcentral region of Pennsylvania and is located less than 100 miles from three major metro areas in the northeast. Baltimore is located just 63 miles south, Philadelphia is just 85 miles southeast, and Washington D.C. is located 92 miles south.