546-548 w. hamilton street, allentown, pa

Redevelopment Opportunity

feinbergrea.comFeinberg Real Estate Advisors, LLC

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546-548 W. Hamilton Street, Allentown, PA

Section: 1

PROPERTY INFORMATION

Executive Summary

546-548 W. Hamilton StreetAllentown, PA 18101

Exceptional Redevelopment Opportunity

Feinberg Real Estate Advisors, LLC1390 Ridgeview Drive, Suite 301 • Allentown, PA 18104-9065 • 610.709.6233 • Fax. 610.398.4057 • www.feinbergrea.com

CINDY MCDONNELL [email protected]: 610.360.9733Direct: 610.709.62333

Feinberg Real Estate Advisors, LLC is pleased to offer for sale546-548 Hamilton Street, an approximately 24,473 SF, 5 story officebuilding located in the heart of Allentown's revitalized core. Theproperty is located in Allentown's Neighborhood Improvement Zone(NIZ) and the newly established Qualified Opportunity Zone. Theproperty is across the street from Tower 6, City Center's newest 10story commercial office building and one block from PPL Center,Allentown's premier sports and entertainment complex. A newcommunity parking deck is located adjacent to the building. Theproperty offers an opportunity for renovations and upgrades.

PROPERTY FEATURESLocated in the Neighborhood Improvement Zone

Located in the Qualified Opportunity Zone

Located one block from the federal & county courthouses

Restaurants and retail shopping within steps of the property

One-of-a-kind tax advantages

LOCATION:Central Allentown Business

District

BUILDING SIZE: Approximately 24,473 SF

FINANCIAL INCENTIVES:

Neighborhood Improvement

Zone (NIZ)

Qualified Opportunity Zone

YEAR BUILT: 1894

ZONING:

B-2 CENTRAL BUSINESS

DISTRICT SEVERAL OVERLAY

DISTRICTS

PROPERTY OVERVIEWA 24,473 SF, 5 story office building located in the existingNeighborhood Improvement Zone (NIZ) and the newlyestablished Qualified Opportunity Zone. The property is inthe Central Business District with easy access to manyamenities including new residential developments,restaurants, retail, arts and entertainment.

LOCATION OVERVIEWThe property is located on Hamilton Street at the corner ofNorth 6th Street. It is steps away from PPL Center, MarriottRenaissance Hotel and the Hamilton Street Business District,the commercial and cultural heart of the Lehigh Valley. TheCity of Allentown is an attractive, welcoming community,filled with activity and energy, offering employment, dining,arts, entertainment, shopping and residential opportunities.

Over $500 million has been invested in downtown Allentownover the past 5 years. This is one of a handful of propertiesin the country that is located in a dual tax advantage zonesuch as this.

BACKGROUND1920 Breinig & Bachman Tailors, Clothiers andHaberdashers SE Corner 6th and Hamilton Streets Ownedby George F. Breinig and A. P. Bachman. Opened in 1888 atthe former Allentown Democrat Building. In 1891, thecompany purchased a building at 6th & Hamilton (the formerFretz and Weinshelmer Building. A fire which started on thefifth floor of the building in the telephone exchangedestroyed the structure and three other buildings on October12th 1893. The company reopened at a temporary locationat 632 Hamilton until the fall of 1895 and moved into the newbuilding. It remained in business until the Great Depressionwhen it was closed.

Property Description





The Breinig & Bachman building at 546 Hamilton Street (thesoutheast corner of Sixth and Hamilton streets) was built in1894. The yellow bricked structure replaced a building of asimilar name built in 1891, but burned down two years laterwhen an electrical storm on the night of Friday, October 13,1893 started a fire in a Bell Telephone switchboard in theadjacent Kramer Building at 544 Hamilton. The fire spread,gutting both structures. The rain-soaked walls collapsed thenext day. The building is notable for a series of circular terracotta plaques featuring the heads of various farm animals.built into the brickwork of the building between the fourthand fifth floors. No one can say for sure why the animalheads were added, however it is believed that they wereincluded to please one of the building's original long-timetenants, the wholesale grain and animal feed dealer GeorgeW. Eckert. Another notable feature are the numerousarchedwindows on both the Hamilton St. and along the SixthSt. fourth floor. They reflect the original stone arch of thesecond floor front facade along Hamilton Street which is theonly surviving piece of the original B & B building that burnedin the 1893 fire. It was saved and incorporated into the new/current building. The building's name is derived from thebuilding's original occupants, the Breinig & Bachman men'sclothing store. Breinig & Bachman sold businessman's suitsand other attire on the first floor. It was a partnershipbetween George F. Breinig and Alfred P. Bachman. Breinig,the senior partner, had entered the dry goods business in1877 at age 14. The remaining upper stories were usedfor professional office space. Breinig & Bachman operateduntil February 1926 when the business closed due to theretirement of George F. Breinig, head of the company.Previously in 1923, Bachman left the firm as an activepartner. Breinig passed in October, 1948; Bachman inFebruary, 1937. In the years since, the building has housedmany businesses. In May 1926 the first floor was taken overby the Leon Furniture store. Leon's moved out after severalyears to a new location at 20 North Seventh Street (whichburned down in a massive general alarm fire in 1969), andthe first floor along with the basement was converted to anightclub and restaurant. The first club, the Avondale PalmRoom, was a big band and jazz club which opened in 1935.The Circlon Club opened in April 1941.

Property History





Neighborhood Improvement Zone



NEIGHBORHOOD IMPROVEMENT ZONE INFORMATION

• Created by a Pennsylvania state law in 2009, theNeighborhood Improvement Zone (NIZ) is a special taxingdistrict that encourages development and revitalization inAllentown. The NIZ consists of approximately 128 acres incenter city Allentown and along the western side of theLehigh River. Under the law, certain state and local taxrevenues generated by new and existing businesses withinthe NIZ can be used to pay debt on bonds and loans that areissued for qualifying capital improvements in the zone.Those improvements include the public-private arenacomplex at Seventh and Hamilton streets as well as otherprivate commercial, retail, residential, hospitality,conference and exhibition projects of approved applicants.The NIZ is overseen and managed by the AllentownNeighborhood Improvement Zone Development Authority(ANIZDA).

• Why was the NIZ created?The NIZ was created as an economic development tool tospur the transformation of downtown Allentown, beginningwith the construction of an event arena, PPL Center that ishome to the Lehigh Valley Phantoms, the professionalminor-league hockey team affiliated with the PhiladelphiaFlyers. Expanding from there, the NIZ is designed torevitalize the arena’s whole neighborhood, as well as thecity’s Lehigh River waterfront, creating a dynamic, healthyand more successful urban core.

• NIZ Benefits to Your Business:Expected property value increaseImproved cleanliness, safety & streetscapesMore parking and better access to your businessIncreased foot traffic with: New housing, hotels, restaurants& retail

• NIZ Benefits to Allentown:New commerce, increased tourism, new companies,thousands of new jobs, a strengthened, more collaborativecommunity, a range of housing options, distinctive,attractive, vibrant downtown, smart growth that encouragesmultiple land uses while preserving open space and historicbuildings



Qualified Opportunity Zone



QUALIFIED OPPORTUNITY ZONE INFORMATION

• What is an Opportunity Zone?An Opportunity Zone is an economically-distressedcommunity where new investments, under certainconditions, may be eligible for preferential tax treatment.Localities qualify as Opportunity Zones if they have beennominated for that designation by the state and thatnomination has been certified by the Secretary of the U.S.Treasury via his delegation of authority to the InternalRevenue Service.

• How were Opportunity Zones created?Opportunity Zones were added to the tax code by the TaxCuts and Jobs Act on December 22, 2017.

• What is the purpose of Opportunity Zones?Opportunity Zones are an economic development tool thatare designed to spur economic development and jobcreation in distressed communities.

• How do Opportunity Zones spur economic development?Opportunity Zones are designed to spur economicdevelopment by providing tax benefits to investors. First,investors can defer tax on any prior gains invested in aQualified Opportunity Fund (QOF) until the earlier of thedate on which the investment in a QOF is sold orexchanged, or December 31, 2026. If the QOF investmentis held for longer than 5 years, there is a 10% exclusion ofthe deferred gain. If held for more than 7 years, the 10%becomes 15%. Second, if the investor holds the investmentin the Opportunity Fund for at least ten years, the investoris eligible for an increase in basis of the QOF investmentequal to its fair market value on the date that the QOFinvestment is sold or exchanged.

• What is a Qualified Opportunity Fund?A Qualified Opportunity Fund is an investment vehicle thatis set up as either a partnership or corporation for investingin eligible property that is located in a QualifiedOpportunity Zone.



Property Details





PROPERTYTYPE:

Office/Retail

APN: 640710656393-1

LOT SIZE: 0.1 AC

BUILDINGCLASS:

Commercial

ZONING:B-2 CENTRAL BUSINESS DISTRICT SEVERALOVERLAY DISTRICTS

BUILDINGFRONTAGE:

Hamilton Street

CROSSSTREETS:

N. 6th Street

YEAR BUILT: 1894

NUMBER OFSTORIES:

5

ELEVATORS: 1

PARKING: Adjacent Parking Deck

BASEMENT: 4,873 SF

Section: 2

LOCATION INFORMATION



Neighborhood Map



Section: 3

DEMOGRAPHICS



* Demographic data derived from 2010 US Census

Demographics Map



ETHNICITY 1 MILE 2 MILES 3 MILES% HISPANIC 53.9% 45.8% 37.5%

RACE 1 MILE 2 MILES 3 MILES% WHITE 47.2% 57.0% 63.9%% BLACK 18.6% 13.7% 11.8%% ASIAN 0.9% 2.2% 2.5%% HAWAIIAN 0.0% 0.0% 0.0%% INDIAN 0.4% 0.3% 0.4%% OTHER 28.7% 22.8% 18.0%

POPULATION 1 MILE 2 MILES 3 MILESTOTAL POPULATION 42,731 108,605 157,988MEDIAN AGE 27.8 30.8 32.9MEDIAN AGE (MALE) 27.0 29.3 31.3MEDIAN AGE (FEMALE) 29.0 32.5 34.6

HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILESTOTAL HOUSEHOLDS 14,289 39,324 59,269# OF PERSONS PER HH 3.0 2.8 2.7AVERAGE HH INCOME $34,091 $40,098 $45,452AVERAGE HOUSE VALUE $117,287 $152,057 $171,246

Section: 4

ADDITIONAL INFORMATION



Retailer Map



Feinberg Real Estate Advisors, LLC, (the "Agent") have been engaged as the exclusive sales representatives for the sale of the property located at 546-548 W. Hamilton Street, Allentown, PA 18101 (the "Property") by Zirconium Properties (the "Seller").

The Property is being offered for sale in an "as-is, where-is" condition, and the Seller and the Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include confidential information and are being furnished solely for the purpose of review by prospective purchasers ("Purchasers") of the interest described herein for which it shall be fully and solely responsible. Neither the enclosed materials, nor any information contained herein, are to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed information, should be registered with the Agent as a "Registered Potential Investor" or as a "Buyer's Agent" for an identified "Registered Potential Investor". The use of this Offering Memorandum, and the information provided herein, is subject to the terms, provisions and limitations of the Confidentiality Agreement furnished by the Agent subsequent to delivery of this Offering Memorandum.

The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by the Agent or the Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners, and directors, as to its accuracy or completeness. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents but rather only outlines of some of the principal provisions contained therein. Neither the Seller nor the Agent shall have any liability whatsoever for any other written or oral communication or information transmitted or made available or any action taken, or decision made, by the recipient with respect to the Property.

The Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from the market for sale at any time and for any reason without notice, to reject any and all expressions of interest or offers regarding the Property, and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. The Agent is not authorized to make any representations or agreements on behalf of the Seller. The Seller shall have no legal commitment or obligation to any recipient reviewing the enclosed materials, performing additional investigation, and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions required under the contract for title to pass from the Seller to the buyer have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents will be held and treated in the strictest of confidence; and (b) the recipient shall not contact employees, contractors, sub-contractors or lien-holders of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or the Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of the Seller or the Agent or as otherwise provided in the Confidentiality Agreement executed and delivered by the recipient(s) to Agent.

Disclaimer





546-548 w. hamilton street, allentown, pa

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