Monday, March 16, 2015

Endurance Acquires Northeastern PA Industrial Portfolio

by Steve Lubetkin,
Endurance Real Estate Group has acquired a three building bulk warehouse/distribution portfolio totaling 544,640 SF in Northeastern Pennsylvania. The buildings were constructed in the late 2000s and feature class A warehouse/distribution specifications including 30’ clear ceiling heights, ESFR sprinkler systems, and ample (and expandable) loading capacity with full dock packages. Lighting, office, and other improvements are planned.

“This deal represented a rare opportunity to acquire Class A quality assets below replacement cost in a tightening submarket in one of the strongest warehouse/distribution corridors in the country” says Benjamin Cohen, president of Endurance. “Two of the buildings suffered from persistent vacancy largely due to the timeframe in which they were delivered in the 2006-2008 time frame, though with leasing market conditions tightening and the inherent appeal of these assets combined with a fresh approach to property leasing and management (with suites in move-in condition), we feel confident that we can step in and stabilize the portfolio quickly.”

The portfolio includes 7 and 15 Alberigi Drive in Jessup Borough, consisting of 166,500 square feet and 129,500 square feet, respectively, and a 248,640 square foot building at 32 S. Preston Drive in Wilkes-Barre. The portfolio is situated in the Northeast PA submarket of the I-81/I-78 Distribution Corridor, offering users immediate proximity to I-81 and close proximity to I-476 (PA Turnpike), I-80, I-84 and I-380. The portfolio is currently 50% occupied.

7 Alberigi Drive is fully leased to two tenants including BAE Systems in the majority of the square footage. 15 Alberigi Drive is fully available and was designed with multiple storefront entrances to efficiently accommodate tenant suites ranging from 32,500 square feet up to a full-building presence.

32 S. Preston Drive offers a 124,080 square foot contiguous block of available space which is can be divided into units of 40,000 square feet, with the other half of the building occupied by Rehrig Penn Logistics.

Planned immediate improvements to 15 Alberigi Drive and the existing vacancy at 32 S. Preston Drive include an upgrade of the warehouse lighting to T5 fixtures and the construction of flexibly designed shell office space and restrooms providing an easily expandable and customizable template for new tenants.

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