Kensington Square

New Kensington | Pennsylvania

Offering Summary

  • Status: closed
  • Price: $2,745,000
  • CAP Rate: 8.25%
  • GLA: 26,351 SF
  • Net Operating Income: $226,471
  • Price/SF: $114.61
  • Year(s) Built: 1985
  • Year(s) Renovated: 1995
  • Lot Size (Acres): 1.46 Acres
  • Major Tenants: DaVita Kidney Care (Total Renal Care, Inc.), Allegheny Valley Hospital (Allegheny Health Network), First National Bank, Axiom Family Center, Southwestern Behavioral Care, Inc. (SPHS), Sunnyside Medical Cannabis Dispensary (Cresco Labs)
  • 92% Occupied, 26,351 SF Four-Building Medical & Retail Offering in New Kensington, PA (Pittsburgh MSA)
  • Anchored by DaVita Kidney Care & Allegheny Health Network (AHN) (Combined 36% of GLA) – Prominent Multi-Billion Dollar Healthcare Organizations
  • DaVita (21% of GLA) is Leased thru July 2026; Over $1.2M Invested by Tenant in Build-Out with 8 Hemodialysis Stations; Large 13.6% Rent Increase in Upcoming Option
  • AHN (15% of GLA) – New 5-Year Lease with Over $1.1M Invested by Tenant in Build-Out; Relocation from Former Hospital in City and Offers Urgent Care, Imaging, Cardiovascular Testing, and More
  • Cheap/Replaceable Rents Averaging $11.57/SF Gross
  • Freestanding First National Bank (FNB) Branch Included in Sale – Separately Parceled with Strong Deposits of $63 Million; Headquartered in Pittsburgh with Strong Local Market Share
  • FNB has Below-Market Rent (Only $24K Annually) and No Options Remaining; Opportunity for Significant Value-Add Via Extension and Rent Increase
  • Offers In-Place Year 1 Cash-on-Cash Return of 9.5% and Year 1 Total Return of 14.9% at 4.25% Interest Rate, 70% LTV Bank Financing Terms
  • Upside via Lease-Up of 2,138 SF Vacancy – Could Add $21,000 to NOI if Leased at $10/SF Gross; Would Take Cap Rate to 8.2% at List Price
  • Sunnyside Cannabis Dispensary (11% of GLA) – Freestanding Building with Over $600K Invested by Tenant in Build-Out and Security Features; Retail Brand of Cresco Labs, a 50+ Unit National Producer and Retail Operator with 10 Other Locations in Pennsylvania
  • Multiple Break-Up Opportunities – DaVita & AHN Fully Occupy Same Building and are a Prime 2-Tenant Medical Investment; Freestanding First National Bank, Freestanding Sunnyside Dispensary
  • Building 3 is Leased to Two Complementary Regional Family, Mental Health & Addiction Counseling Organizations (Axiom & SPHS); Both have Multiple Facilities throughout Western PA
  • Offering Includes Approx. 30 Covered Parking Spaces Located Below City-Owned Garage – City is Responsible for All Garage Maintenance
  • Dense Demographics – City Center Location with 10,000 Residents in the Immediate One-Mile Radius; 75,000 Residents within Five-Miles
  • New Kensington is Experiencing Renewed Investment into Downtown Area – $7M+ Invested in New Gov’t + PennState Partnership Facilities with Workforce Technology Training, Co-Working Space, and Small Biz Incubator Program
  • Pittsburgh, PA MSA – Home to a Population of 2.4 Million and a Robust Economy with Major Employers Including PNC, Alcoa, PPG, US Steel, UPMC, AHN, Highmark, Westinghouse, Dick’s Sporting Goods, Giant Eagle, and More
EXCLUSIVELY LISTED BY:

Craig Fuller

Senior Managing Director