Colliers completes $12.725 Million sale of industrial property in Northeast Philadelphia

PHILADELPHIA, PA — Colliers announced the $12,725,000 sale of 2501 Grant Ave., a 119,728 s/f industrial facility situated on 5.96 acres in Northeast Philadelphia. The property was acquired by 2361-2371 Welsh Acquisitions LLC. Colliers vice chair Rich Gorodesky, SIOR, and vice president Adam Gorodesky, CCIM, represented the seller, Grant Equities LLC, in the disposition.

2501 Grant Ave. is occupied by AAA Distributors, LLC, a Philadelphia-founded distributor of kitchen, bath, doors, and flooring products. The facility serves as AAA Distributors’ showroom and primary warehousing and distribution center, supporting the company’s retail and logistics operations. Located in Northeast Philadelphia with immediate access to Route 1 and I-95, the property provided investors with a stable, long-term income opportunity backed by an established operating company.

Prior to launching the sale process, Colliers worked with ownership to unlock additional value by restructuring the existing lease. The team identified that the property’s in-place lease was limiting its market potential and negotiated a new 10-year lease with AAA Distributors with $8.50 psf in starting rent, 3.5% annual escalations and a net lease structure with minimal landlord obligations.

The lease repositioning increased the property’s net operating income by 41% and strengthened the asset’s appeal to net lease investors. Following the restructuring, Colliers executed a targeted marketing campaign that generated strong investor interest and resulted in the $12,725,000 sale, representing $106.28 per square foot at a 7.99% capitalization rate.

“This transaction demonstrates the value of combining deep market knowledge with a strategic approach to real estate advisory,” said Gorodesky. “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.”