Historic Lebanon Farmers Market is scheduled for auction in December
The historic Lebanon Farmers Market building at 31-35 S. Eighth St. will be auctioned by Joel Heisey Auctioneer at the end of the year.
In a letter to tenants earlier this month, owners Dunamis Holdings LLC said the property will not change ownership until March, allowing time for the auction transaction to close.
"It is the opinion of the auctioneers that the property will sell to someone who wants to continue operating the property as a market since that is its highest and best use," Dunamis Holdings said in the letter, adding that tenant leases will convey in any sale.
"We truly believe that new energy will be better for the continued vitality of the Market."
The Richland-based firm had purchased the 33,000-square-foot building in March 2022 for $1.675 million.
Dunamis Holdings partner Jason Schwalm said that firm's key goal right now is finding a new local owner who can take the market to the next level.
Schwalm is partners in Dunamis Holdings LLC along with in-laws Mark Landis Sr. and Daniel Landis, all of whom are also involved in the Myerstown-based family business Olde Mill Cabinetry . Schwalm said the reason for selling was bittersweet – the growth of the cabinet business has limited how much time could be dedicated to the market, which he says has so much potential.
Schwalm said that in all reality, he just wishes they had more time to dedicate to the market, because it's such a great property with so much potential.
Now, the hunt is on for a buyer who would be ideal for downtown Lebanon, said Schwalm.
"There are a lot of neat things going on in the downtown, and there are a lot of investors who are really investing in the downtown," he said. "I love Lebanon and there's so much potential right here in Lebanon."
Schwalm said the ideal buyer might be a local family who could take over the market and have it be their primary focus. He cited auctioneer Joel Heisey's ties with the Lebanon Valley agricultural community, along with a desire to prioritize the future of the market over simply maximizing sale price, as reasons for going the auction route vs. listing with a realtor.
"Our goal is not to sell this to someone who is from out of town and then they make all kinds of changes that aren't in the best interest of the community," said Schwalm.
The reaction from tenants so far has been pretty positive, Schwalm said, adding that vendors are sad to see the current owners go but also understand the reasoning. Schwalm said that vendors don't want to have to leave, and he thinks that Dunamis has allayed those fears, with vendor leases set to convey in the sale.
"Overall it's been very positive and I think they'll be comforted once we find the next buyer and (vendors) see (the buyer) making improvements," said Schwalm.
According to an auction flyer, the market currently has 21 of 22 stands occupied on the first floor and four of six stands occupied on the second floor. The third floor has a brewpub operated by Berks County microbrewery Schaylor Brewing Co.
Office space, storage, and a lunchroom are located in the basement, where the stone foundation of the 1892 building is visible. As LebTown chronicled in 2021 , the market building was built on the site of an early Lebanon County prison where, in the late 1870s, the Blue-Eyed Six were imprisoned, and where five of the six were hanged.
The building was overhauled from top to bottom in 2006 by Beers + Hoffman Architecture while it was owned by Bill Kolovani , who had purchased the property in 2003 and restored it to its original purpose. For decades leading up to its revival as the Lebanon Farmers Market, the building was home to S. Kantor Sewing Co.
According to the auction flyer, the property nets $160,000 annually.
"Sellers have enjoyed their ownership but have another opportunity, are very motivated to sell, and believe that a new owner will be able to take this great property to the next level," reads the auction description. "Whether you are a restaurant owner looking for a new location, or an investor, this property deserves your consideration."
The market is being shown by appointment and can also be seen on any market days (Wednesday to Saturday).
Schwalm said he's anxious to see who they can attract to really take the market to the next level.
"That's my ultimate goal to find the right person who can continue this and make it an even better attraction in the downtown," said Schwalm.
The Lebanon Farmers Market auction will be held at the market building at noon Monday, Dec. 30. A 10% deposit is due at the auction, with the balance due in 60 days.
