Highlighting strong cross-river and regional capital interest in major Greater Philadelphia industrial corridors, Colliers has successfully completed the $12,725,000 sale of 2501 Grant Avenue, a sprawling 119,728-square-foot single-tenant industrial facility situated on nearly six acres in Northeast Philadelphia.
The property was acquired by 2361-2371 Welsh Acquisitions LLC from Grant Equities LLC. The transaction pencils out to $106.28 per square foot at a capitalization rate of 7.99%. The facility is fully occupied by AAA Distributors, LLC—a prominent regional distributor of kitchen, bath, flooring, and door products—which utilizes the site as its primary corporate showroom, warehouse, and distribution hub to service its expanding customer base across the Pennsylvania, New Jersey, and Delaware tri-state market.
Prior to taking the asset to market, the Colliers brokerage team—led by Vice Chair Rich Gorodesky, SIOR, and Vice President Adam Gorodesky, CCIM—collaborated closely with ownership to unlock hidden asset value through a strategic lease overhaul. Recognizing that the property’s legacy lease terms constrained its true market potential, the team negotiated a fresh 10-year net lease with AAA Distributors. The restructured agreement features a starting base rent of $8.50 per square foot, steady 3.5% annual rent escalations, and a net lease structure that minimizes landlord operational obligations.
This proactive repositioning strategy immediately boosted the property’s net operating income (NOI) by 41%. Armed with a stabilized, long-term income stream and built-in cash flow growth, Colliers launched a targeted marketing campaign that drew intense competition from institutional and private net-lease investors looking for reliable industrial product near vital regional arteries like Route 1 and Interstate 95.
“By identifying an opportunity to improve the lease structure and reposition 2501 Grant Avenue as a long-term net-leased investment, we were able to enhance the asset’s marketability, expand the buyer pool and deliver a successful outcome for our client,” Rich Gorodesky noted regarding the advisory approach.
The transaction underscores robust, ongoing investor appetite for high-functioning industrial logistics and showroom real estate throughout the Greater Philadelphia and surrounding Northeast submarkets, where properties featuring mission-critical tenants and direct transit connectivity continue to command premium valuations.
