M Square Commercial recently completed a strategic land disposition in Erie, Pennsylvania, transforming two parcels of excess commercial property into a value-generating opportunity for both the seller and buyer.
The transaction involved 2.649 acres adjacent to a Modwash development, effectively marketed and sold to neighboring business owner Papa Echo Holdings, LLC, a Burger King franchisee. This sale underscores the impact of strategic property disposition in reducing holding costs and supporting business expansion in the commercial sector.
Project Overview: West 26th Street Commercial Land Sale in Erie, PA
- Location: West 26th Street, Erie, PA
- Settlement Date: September 27, 2024
- Property Size: Two parcels—1.925 acres and 0.724 acres
- Zoning: C-1 and C-2 commercial zoning
- Client (Seller): Hutton Erie Filmore PA ST, LLC
- Buyer: Papa Echo Holdings, LLC (Burger King franchisee)
- Local Broker Partner: Metro Commercial Real Estate, Samuel Thiers
Efficient Commercial Property Disposition in Erie’s Expanding Retail Market
The Erie commercial real estate market offers unique possibilities for property disposition, particularly for owners holding surplus land post-development. The Modwash excess parcels, in this case, generated significant carrying costs due to Pennsylvania’s state, county, and school tax obligations. Through targeted disposition, M Square Commercial enabled Hutton Erie Filmore PA ST, LLC to reduce these costs and create a strategic expansion opportunity for Papa Echo Holdings.
The parcels’ C-1 and C-2 zoning designations offered valuable development flexibility, and their location adjacent to a Burger King franchise supported the franchisee’s growth plans, contributing to Erie’s economic development.
Strategic Approach to Excess Parcel Disposition for Franchise Expansion
M Square Commercial applied a tailored strategy to meet the seller’s objectives while aligning with local market demand. The transaction approach focused on:
- Adjacent Property Owner Focus: By identifying the Burger King franchisee as a prime buyer, M Square Commercial leveraged natural expansion potential, maximizing property value by targeting a motivated and strategically positioned buyer.
- Local Market Partnership: Collaborating with Samuel Thiers of Metro Commercial Real Estate, M Square Commercial tapped into essential local expertise, ensuring efficient transaction execution within Erie’s real estate landscape.
- Tax Burden Analysis: Detailed analysis of state, county, and school tax obligations informed the pricing strategy, underscoring the financial benefits of acquisition for potential buyers.
Key Objectives for the West 26th Street Commercial Property Sale
M Square Commercial focused on three primary objectives for the client:
- Cost Reduction: By securing the sale, M Square Commercial helped Hutton eliminate substantial annual tax obligations, improving the financial performance of their property portfolio.
- Strategic Value Creation: Marketing the property to an adjacent franchisee opened up expansion opportunities for an established business, optimizing land use within Erie’s commercial corridor.
- Market-Timing Advantage: The transaction occurred under favorable market conditions, ensuring optimal value for both the seller and the buyer.
Impact of Strategic Land Disposition on Erie’s Commercial Real Estate Market
This transaction produced measurable benefits for the seller and the broader Erie community, demonstrating the advantages of aligning property disposition with local business growth:
Financial Benefits of Selling Excess Commercial Land:
- Eliminated annual tax obligations for the seller
- Created expansion value for the Burger King franchisee
- Optimized commercial land use along the West 26th Street corridor in Erie
Local Market Development through Commercial Land Sale:
- Enhanced utilization of C-1 and C-2 zoned land
- Supported growth for an existing business, reinforcing local commercial activity
- Contributed to Erie’s commercial development and strengthened the community’s economic landscape
Contact M Square Commercial for Strategic Commercial Real Estate Solutions
M Square Commercial specializes in commercial property dispositions, strategic lease negotiations, and investment consulting for property owners and business operators across the U.S. For more information about this case study or how M Square Commercial can support your commercial real estate goals, contact Managing Broker Brittany Megrath, CCIM.
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