Allenwood Motel 1058 Hausman Rd Allentown, PA 18104
Presented by: Shanty Gomez Miranda
Prepared for: Allenwood Motel
SERHANT. Lehigh Valley Team
Executive Summary
Contents.
3
Tenant Overview
Location Analysis
16
Market Overview
Financial Analysis
7
5
20
Property Overview
13
A Prime Investment Opportunity in a High-Growth Market
1058 Hausman Road is a 22-room motel on 5.5± acres in South Whitehall Township, ideally positioned near I-78/Route 309, Dorney Park, and Lehigh Valley Hospital. Zoned IC-1, the property allows for commercial, medical, multifamily, or mixed-use redevelopment—up to 70 feet in height. The site includes 22 rentable rooms, a manager’s unit, basement storage, and on-site parking, all served by public utilities. With a projected 60% occupancy at a $110 ADR, the asset generates an estimated NOI of $329,388, supporting the $2.9M asking price at an 11.36% pro forma cap rate. This is a rare opportunity to acquire a value-add hospitality property or development site in a growth corridor with flexible zoning and strong demand drivers.
View Property Video
1058 Hausman Road is located in South Whitehall Township, just west of Allentown, at the junction of I-78 and Route 309. Positioned on a quiet cul-de-sac, the property offers both privacy and quick access to major Lehigh Valley attractions and employers.
Cap Rate and NOI:
Price or Pricing Guidance:
Building Size:
At the projected 60% occupancy and $110 average daily rate, the property generates an estimated NOI of $329,388, resulting in a pro forma cap rate of 11.36% at the $2.9 million asking price.
The structure totals approximately 8,320 SF and includes 22 guest rooms, a manager’s unit, a basement, and lobby area. Built in a classic motor lodge style with exterior access, the building sits on just a portion of the 5.5-acre lot, allowing room for parking or future redevelopment.
Tenant Mix or Anchor Tenants: None
Location:
The property is offered at $2,900,000, reflecting both its income-producing potential and significant redevelopment value. Pricing is supported by a projected 11.36% cap rate and aligns with market demand for well-located, flexible-use sites in the Lehigh Valley.
Office Spaces
Lobby
Event Space
Modern Design and Strong Income Potential in a Desirable Location
Address
1058 Hausman Rd, Allentown, PA 18104
Property Type
Commercial
Year Built/Renovated
2019
Building Size
8320 Sqft
Lot Dimensions
Irregular Lot
Lot Area
5.5 Acres
Floor Count
1 Floor
Occupancy Rate
N/A
Number of Units
22 Rooms
Anchor Tenants
Allenwood Motel
Net Operating Income (NOI)
$224,269
Cap Rate
7.73%
Asking Price
$2,900,000
Property Taxes
$16,274
Parking
35 vehicles (estimated)
Zoning
IC-1 District
Category
Details
Zoning Classification
IC - 1 District
Permitted Uses
Mixed Use - Multiple
Entitlements
Existing use as Motel
Restrictions
None
Property Address Here
Zoning and Entitlements
Structural Integrity
Good condition
Mechanical Systems
Environmental Assessment
Inspection Date
Property Condition Report
Redevelopement Potential
Zoned IC-1 (Industrial Commercial), the property permits a broad range of commercial, mixed-use, and hospitality operations. This provides future investors the flexibility to reposition or expand the asset in line with market demand.
Currently operating at approximately 60% occupancy with below-market ADR, there is substantial upside through improved operational efficiency, repositioning, or long-term redevelopment. Based on pro forma metrics, the offering presents a compelling cap rate for value-focused investors.
Strong Value Add
Investment Highlights
Strategically positioned just west of Allentown, the property offers immediate access to I-78 and Route 309, two of the region’s most critical transportation corridors. This location attracts transient lodging demand from both commercial and leisure traffic across the Lehigh Valley.
Prime Location
Courtesy of Olivia Marble. Lehighvalleynews.com
Unparalleled Accessibility in a Thriving Economic Hub
Economic Drivers
1058 Hausman Road is located in South Whitehall Township, Lehigh County, PA—just minutes from downtown Allentown and positioned near the junction of I-78 and Route 309. This central location offers seamless regional access across the Lehigh Valley, placing the property within a short drive of Lehigh Valley Hospital–Cedar Crest, Dorney Park, and multiple corporate and logistics hubs. The cul-de-sac setting provides privacy while maintaining excellent connectivity, making it ideal for hospitality, commercial, or mixed-use operations.
Healthcare & Education: Lehigh Valley Health Network and St. Luke’s University Health Network are among the region’s largest employers, with campuses just minutes from the site. Nearby Cedar Crest College and Muhlenberg College further bolster the area’s economic base . Transportation & Logistics: Located near I-78, Route 309, and Route 22, the site benefits from proximity to one of the nation’s top logistics corridors. FedEx Ground, Amazon, and UPS have major regional facilities in the Lehigh Valley, supporting continued industrial growth. Tourism & Entertainment: Dorney Park & Wildwater Kingdom, Coca-Cola Park (home of the IronPigs), and the PPL Center attract millions annually, driving overnight stays, restaurant traffic, and consumer demand in the hospitality sector.
South Whitehall Township, Lehigh County, PA
Shopping and Dining Tilghman Square Shopping Center Hamilton Crossings South Mall The Promenade Shops at Saucon Valley Lehigh Valley Mall Trexler Mall The Shelby Copperhead Grille Youell’s Oyster House Grille 3501 Union and Finch Wert’s Café Pho #1 Plaza Azteca Prime Steak House Cali Burrito Recreation and Green Spaces Covered Bridge Park Trexler Memorial Park Jordan Creek Greenway Lehigh Parkway Cedar Creek Park Dorney Park & Wildwater Kingdom Trexler Nature Preserve Lehigh Valley Zoo Allentown Rose Gardens Lehigh County Sports Fields Schools and Education Parkland High School Orefield Middle School Kratzer Elementary School Springhouse Middle School Lehigh Valley Charter High School for the Arts Cedar Crest College Muhlenberg College Lehigh Carbon Community College Penn State Lehigh Valley Parkway Manor Elementary School
Located just west of downtown Allentown, the property offers quick access to the city’s revitalized business district, dining, arts, and entertainment scene—all within a 10-minute drive.
Neighborhood Guide
Median age remains consistent across all radii, reflecting a stable and mature residential base in the surrounding community
Demographics
The area surrounding 1058 Hausman Road is part of a thriving and economically diverse section of the Lehigh Valley. Within a 1-, 3-, and 5-mile radius, demographic trends show consistent population growth, increasing median household incomes, and a stable, family-friendly age profile. The region’s strong employment base, anchored by healthcare, education, logistics, and manufacturing sectors, supports a steady demand for both commercial services and housing. These favorable indicators enhance the property’s long-term investment appeal, offering confidence to investors seeking stability and upside in a well-established growth corridor.
Steady growth within 1, 3, and 5 miles highlights a diverse and dense consumer base.
Median household income increases with distance, highlighting expanding affluence in the surrounding submarket.
Year
Projected Income ($)
Projected Expenses ($)
Projected NOI ($)
Year 1
$289,000
$58,000
$231,000
Year 5
$336,000
$64,000
$272,000
Year 10
$385,000
$70,000
$315,000
Assumptions Behind the Model: ADR Increase from $75 to $85 post-renovation, Occupancy stabilizes near 65% by Year 5 and grows to 70% by Year 10, Incremental increase in event/group stays and rate optimization, Expenses scale modestly with inflation and higher service levels, NOI margins remain strong due to low fixed overhead and limited staffing needs
Pro-Forma Financials - With Renovation & Operational Optimization
Capitalization Rates and Valuation Metrics
Comparable Sales
Metric
Value ($)
7.97%
Price per Square Foot
Regional motel sales range from $875K to $1.75M for smaller sites with fewer rooms and limited land. Allenwood Motel offers 22 rooms on 5.5 acres with IC-1 zoning, allowing up to 70-foot development. Its prime location near major highways and institutional neighbors supports both hospitality use and redevelopment potential, justifying the $2.9M asking price.
Property Name/Address
Sale Price ($)
Rent ($/SF)
Cap Rate (%)
Black Forest Inn, Slate Run
$1.1 Million
Not Disclosed
We Are Inn, Phillipsburg, NJ
$1.75 Million
25%
Schopfs Motel, Wrightsville, PA
$875,000
Asking Price in Relation to Market Comps
Understanding Trends and Opportunities in the Market
Major employers like Lehigh Valley Health Network and St. Luke’s University Health Network drive significant demand for lodging from medical staff, patients’ families, and visiting professionals.
Nearby institutions such as Cedar Crest College, Muhlenberg College, and Lehigh University support steady demand from visiting faculty, students’ families, and event-related stays.
Education & Research
Industries Supporting the Economy
Healthcare & Life Sciences
With quick access to I-78, Route 309, and Route 22, the area serves as a distribution hub for Amazon, Nestlé, and others—fueling demand from a large logistics and industrial workforce.
Manufacturing & Logistics
Key Employers or Institutions
Amazon operates major logistics and distribution facilities throughout the Lehigh Valley, employing thousands of workers. These centers bolster the area’s industrial economy and support steady demand for workforce accommodations and regional services.
Educational Institutions
Logistics & Warehousing
Located less than 10 minutes away, this private liberal arts college enrolls over 1,300 students and hosts numerous academic, athletic, and cultural events, contributing to local lodging and service demand throughout the year.
Healthcare Providers
One of the region’s largest employers, LVHN operates multiple hospitals and outpatient centers nearby, including its flagship campus just minutes from the subject property. It supports thousands of jobs and drives substantial demand for short-term lodging and housing.
May 2024
A three‑story medical office building is underway near the site, housing practices in family medicine, sports medicine, orthopedics, physical therapy, and more. The project reinforces healthcare-related density and synergies ideal for complementary development on adjacent sites like Hausman Road
Although currently undergoing planning review, Parkland School District is proposing a major campus expansion that includes new classrooms, labs, cafeteria upgrades, additional parking, and infrastructure improvements (e.g. bus loops, road enhancements).
2027-2028
Future Developments
A new four-story building with approximately 70 senior living apartments is under construction directly within South Whitehall Township, adjacent to Luther Crest. This institutional expansion underscores demand in the senior housing sector and could increase interest in surrounding parcels, including the Allenwood Motel adjacency
Luther Crest Greenwood Apartments - Expansion
Parkland High School Campus Expansion
Oct 2024
St Luke's Multi-specialty Office Building
Exterior
This Offering Memorandum has been prepared by SERHANT. for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any property. All information contained herein is believed to be accurate but is not guaranteed. Prospective buyers should independently verify all property details and financials and consult with legal and financial advisors before making any purchasing decision.
Shanty Gomez Miranda {{user.title}} 267..506.4417 610.635.9977 shanty@serhant.com
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