Wednesday, November 1, 2017

I-81 Industrial Portfolio Trades For $30M

by Steve Lubetkin,
NorthPoint Development has acquired a three-building industrial portfolio in the dynamic Northeastern PA submarket from Endurance Real Estate Group for $30.1 million.

The buildings, 7 Alberigi Drive and 15 Alberigi Drive in Jessup, PA, and 32 Earth Conservancy Drive (also known as South Preston Avenue) in Wilkes-Barre, total 544,974 square feet.

According to Real Capital Analytics, a proprietary research database, 15 Alberigi Drive, a 130,000 square foot property, sold for $7.2 million; 7 Alberigi Drive, a 167,000 square-foot industrial, represented $9.2 million; and 32 Earth Conservancy Drive, a 249,000 square-foot warehouse, represented $13.7 million of the portfolio price.

The transaction represents the largest portfolio of industrial real estate that has traded in Northeastern Pennsylvania in several years.

“This was a great opportunity for both the buyer and seller.” The portfolio was 78 percent occupied at the time of the sale. “Endurance Real Estate Group added tremendous value through thoughtful renovations and tenancy, while the remaining vacancy provides further value add opportunity for the purchaser.”

All three buildings are class-A facilities that were initially developed as part of a joint venture partnership between MetLife and Chicago-based Versus Development. They feature market-leading functionality including 30-foot clear height ceilings, T-5 lights and the potential to expand car and trailer parking as well as loading positions.

The properties are strategically located within one of the most densely populated areas in the region, which boasts a strong local labor pool. The surrounding highway network of I-81, I-84, I-80, I-380 and the Pennsylvania Turnpike provides easy access to major Northeast Corridor cities including New York, Philadelphia, Pittsburgh, Washington, DC, and Baltimore.

So far this year, the Northeastern PA submarket of the I-81/I-78 distribution corridor has been one of the most dynamic leasing markets in the entire Northeastern U.S. “There has been approximately 3 million square feet of net absorption year to date with over 3 million square feet of new construction underway, much of it pre-leased. The current vacancy rate of 3.8 percent is the lowest throughout the eastern part of the state, and we expect demand will continue to outpace supply.”

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