Colliers Closes $12.725 Million Industrial Sale in Northeast Philadelphia for Grant Equities LLC

PHILADELPHIA — Colliers has completed the $12,725,000 sale of 2501 Grant Avenue, a 119,728-square-foot single-tenant industrial facility in Northeast Philadelphia, the firm announced Sept. 10, 2026. The buyer, 2361-2371 Welsh Acquisitions LLC, acquired the property from seller Grant Equities LLC at $106.28 per square foot and a 7.99% capitalization rate.

Colliers Vice Chair Rich Gorodesky, SIOR, and Vice President Adam Gorodesky, CCIM, represented Grant Equities LLC in the disposition.

Property and Tenant Overview

The 5.96-acre property at 2501 Grant Avenue is fully occupied by AAA Distributors, LLC, a Philadelphia-founded distributor of kitchen, bath, doors and flooring products. The facility serves as AAA Distributors' headquarters, primary warehouse and distribution center, and showroom, supporting the company's retail and logistics operations. The building sits near the intersection of Grant Avenue and Blue Grass Road in Northeast Philadelphia, with immediate access to Route 1 and Interstate 95.

AAA Distributors completed a major showroom remodel and grand reopening at the site in July 2024, underscoring the tenant's continued investment in the location and its operational reliance on the facility.

Lease Repositioning Drove a 41% NOI Increase

Before launching the marketing process, Colliers worked with Grant Equities LLC to restructure the existing lease, which the firm determined was limiting the property's market potential. Colliers negotiated a new 10-year net lease with AAA Distributors at a starting rent of $8.50 per square foot, with 3.5% annual escalations and minimal landlord obligations.

The restructured lease increased the property's net operating income by 41% compared with the prior lease structure. At $8.50 per square foot net across 119,728 square feet, the first-year base rent totals approximately $1,017,000 — a figure that aligns with the implied NOI at the reported 7.99% capitalization rate on the $12,725,000 sale price. With 3.5% annual rent bumps compounding over the 10-year term, in-place rent is projected to reach approximately $12.00 per square foot by the lease's final year.

"This transaction demonstrates the value of combining deep market knowledge with a strategic approach to real estate advisory," said Rich Gorodesky, SIOR, MBA, Vice Chair at Colliers. "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."

Marketing Campaign and Investor Demand

Following the lease restructuring, Colliers executed a targeted marketing campaign that generated broad investor interest in the asset. The repositioned lease structure — featuring a long-term net lease with contractual rent escalations and minimal landlord responsibilities — widened the buyer pool beyond local owner-users to include net-lease investors seeking durable, long-term income streams.

The transaction reflects continued investor demand for single-tenant industrial properties in Northeast Philadelphia, particularly those with strong tenancy, mission-critical use, and convenient access to major transportation corridors. The 7.99% capitalization rate is consistent with value-add and B-type single-tenant net-lease product in the Philadelphia market.

About the Parties

Grant Equities LLC was the seller of record. The buyer, 2361-2371 Welsh Acquisitions LLC, acquired the fully occupied asset as a stabilized net-lease investment. Colliers, a global diversified professional services and investment management company, brokered the transaction through its Philadelphia office. Rich Gorodesky and Adam Gorodesky led the assignment on behalf of the seller.

Sources: Colliers press release, Sept. 10, 2026