Marcus & Millichap is pleased to present the opportunity to acquire the Zelienople Industrial Park located at 719 West New Castle Street, 306 Halstead Boulevard, and 420 Halstead Boulevard in Zelienople, Pennsylvania. The subject property consists of approximately 488,282 square feet of manufacturing and warehouse space and is situated on 31.81 acres of land. The four-building asset features 12 suites, a clear height ranging from 14’ to 30’, 15 dock-high doors, 29 grade-level doors, 17 overhead cranes, three-phase power with 1,200 amps and 480 volts, and ample industrial outdoor storage space. Located 31 miles north of Downtown Pittsburgh the property has easy proximity to Interstate 79 to the East and accessibility to Interstate 76 to the West.
Situated in Butler County, the property benefits from a relatively lower tax burden compared to surrounding counties, creating a competitive advantage to retain tenants and release vacant spaces. In the third quarter of 2024, the vacancy rate in the Butler County industrial submarket sat at 5.1 percent. With most commercial real estate markets across the U.S. headed for negative rent growth in an inflationary environment, future investment demand will likely seek specialized properties, like the subject asset, that give landlords greater pricing power. The property is 95 percent occupied at below-market rents ranging from $4.17 to $5.75 per square foot on modified gross leases, creating a significant upside in rental income. Anchored by a leading oilfield equipment and services provider, Deep Well Services, the average tenancy is over 15 years. International and national tenants such as polyurethane equipment manufacturer, Cannon USA, Inc., and sheet metal processor, Main Steel, provide additional financial stability.
The Pittsburgh metropolitan area, nestled in the foothills of the Allegheny Mountains, has evolved significantly from its historical roots in the steel industry. Comprising seven counties and home to approximately 2.4 million residents, with a concentration in Allegheny County, the region’s economy has diversified, driven by a robust educational sector that includes institutions like Carnegie Mellon University and the University of Pittsburgh. The tech industry is burgeoning, particularly in neighborhoods like the Strip District and Oakland-Shadyside, contributing to high-compensation jobs. Pittsburgh boasts a median home price below the national average, allowing for a homeownership rate of 69 percent. With a low crime rate and numerous cultural amenities, including professional sports teams and a vibrant arts scene, Pittsburgh presents an attractive socioeconomic landscape for both residents and businesses.
BROKER OF RECORD
TIMOTHY STEPHENSON JR.
Pennsylvania Broker of Record
2005 Market Street, Suite 1510
Philadelphia, PA 19103
Timothy.Stephenson@MarcusMillichap.com
License #: RB062197C and RMR006104
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0370492)
