SCOPE Commercial Real Estate Services, LLC (“SCOPE”) is pleased to exclusively present for sale The Hagy Way Industrial Center at 1399 Hagy Way in Harrisburg, PA. This prime property offers a unique opportunity for businesses seeking expansive warehouse and storage facilities. The site features two well-maintained buildings, one with two stories and the other with one story, and a combined area of 39,189 square feet, situated on a generous 3.36-acre lot. Built in 1987, the property is ideally suited for a variety of industrial uses, providing ample space for operations and storage. The Main Building has an average height of 32.37 feet and a maximum height of 58.45 feet, while the Steel Building has an average height of 14.10 feet and a maximum height of 17.50 feet. The buildings are provided with six (6) elevated dock doors and four (4) grade-level drive-in doors, accommodating various industrial needs. The Main Building is equipped with multiple service panels rated at 200- or 400-amps with 120/208-volts, while the Steel Building has a 600-amp service panel with 120/208-volts. The strategic location in Harrisburg ensures easy access to major transportation routes, enhancing logistical efficiency for the property’s tenants. The property falls under the zoning jurisdiction of Susquehanna Township and is categorized as Industrial (IG) within the Industrial General District. The maximum site coverage is 80 percent, and the height of the principal building shall not exceed 50 feet. The front setback distance is 50 feet, the side setback distance is 25 feet, and the rear setback distance is 50 feet. The property is currently leased to three tenants: Fessenden Hall Inc., EVO Transportation and Energy Services, Inc., and ALS Trucking, Inc. • Fessenden Hall Inc. leases both the one-story building and the entire two-story building, totaling approximately 39,189 square feet. However, they only utilize the lower floor of the two-story building and the entire one-story building, which amounts to around 26,000 square feet. They are currently paying $135,960 NNN, equating to a rent of $3.47 NNN per square foot. This lease is significantly below market value. • EVO Transportation and Energy Services, Inc. is an IOS tenant occupying approximately 1 acre of outside land for truck parking. They currently pay $72,000 per year for this space. • ALS Trucking, Inc. is an IOS tenant occupying 0.55 acres of outside land for truck parking. They currently pay $34,200 per year for this space. 2028 Value Creation Opportunity: Considering Fessenden Hall Inc.'s lease is significantly below market, when their lease ends in 2028 (with one 5-year option where rents are set at fair market value), the new buyer will have the opportunity to raise the rent to market rates, which are currently above $8 per square foot. In 2026 and 2027, there will also be opportunities to raise the rents of the IOS tenants to $80,000 and $36,000, respectively. These increases have the potential to boost the 2028 NOI to $355,356. The Harrisburg Area East industrial market is an extension of the I-81/78 Corridor, a significant national industrial and logistics hub. The region benefits from excellent transportation infrastructure, including immediate connections to I-81, I-83, I-78, I-76, and I-80, and access to major ports. Its strategic location has attracted national occupiers like UPS, D&H Distributing, Lowes, and Lennox. Despite recent challenges, the submarket remains an attractive option for industrial tenants and investors. The combination of strategic location, limited available land, and ongoing leasing activity suggests a resilient market poised for future growth as economic conditions improve. Harrisburg’s asking rent growth has decelerated since late 2022 after peaking at an all-time high of 9.8%. As of Q3 2024, annual rent growth has decelerated to 4.1%, which is higher than the national pace of 2.9%. Harrisburg’s consistent rent growth has contributed to cumulative rent growth of 42.1% over the past five years. These increases have driven average industrial rents to $8.20 per square foot, but rents remain notably below the national average of $12.00 per square foot. Smaller facilities can often command higher rents, with recent leases in the area achieving rates as high as $13.98 per square foot.