1778 Frankstown Road
- 1778 Frankstown Road, Johnstown, PA 15902
- Property Type:
- Multi Tenant
- Cap Rate:
- 9.62% pro-forma cap
- Square Feet:
- 27,265 sqft
- Lot Size:
- 17 Acres
- Price Per Square Foot:
- Year Built:
- 27,265-Square-Foot Industrial Asset Situated on 17 Acres
- Highly Functional Property: 18 Grade-Level Doors and Three Dock-High Doors in a Distribution Layout
- Partial Sale-Leaseback with Lease-up or Owner-Use Opportunity of 18,600 Square Feet
- Excess Acreage Creates Opportunity for Additional Development and Value-Add
- Proximate to John Murtha Johnstown-Cambria County Airport
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1778 Frankstown Road in Johnstown, Pennsylvania, occupied by the current owner. The subject property consists of approximately 27,265 square feet of warehouse space and is situated on 17 acres of land. The multi-tenant asset features a distribution layout equipped with 18 grade-level doors, three dock-high doors, and a clear height of 14’. The property sits in close proximity to the John Murtha Johnstown-Cambria County Airport. Upon the sale of the property, the owner of the tenants B-Line Express and Epic Pro Paymaster plans to execute a partial triple net leaseback with 3.0 percent annual rent escalations and lease terms of one year and five years, respectively. With 18,600 square feet of vacant space, the property can be acquired for partial owner use or as a lease-up investment. Excess Acreage also offers investors a value-add development opportunity.
Johnstown is a relatively small market, containing 5.8 million square feet of industrial space. The vacancy rate has trended lower over the last two years, settling at just 2.1 percent during the third quarter of 2023. While the increase in market rents has slowed in recent quarters, the annual growth rate remained robust at 7.2 percent in Q3, allowing landlords to stay ahead of the consumer price index. Unlike most markets that have to contend with a flood of new developments, Johnstown had no industrial properties under construction in Q3 (CoStar). If net absorption remains in positive territory, vacancies will remain low for the foreseeable future, helping to keep rent growth high.
Located 57 miles east of Pittsburgh, Johnstown, Pennsylvania, is home to over 18,000 residents in the picturesque landscape of the Laurel Highlands. The development of the city began with the construction of the Pennsylvania Railroad, which spurred the growth of the iron, coal, and steel industries during the second half of the 19th century. During this time, Johnstown’s Cambria Iron Company emerged as the nation’s largest steel producer in the United States. However, Johnstown’s fame also stems from the devastating Johnstown Flood of 1889, one of the deadliest natural disasters in U.S. history. Over the years, Johnstown has experienced significant shifts in its economy along with the decline of the steel industry. Today, the local economy is largely anchored by healthcare, education, defense, and tourism. Major employers include Conemaugh Memorial Medical Center and the University of Pittsburgh at Johnstown. While Johnstown has faced socioeconomic hardships, it retains its small-town charm and community spirit. The resilient city continues to reinvent itself, embracing new opportunities while honoring its industrial heritage.