SCRANTON, PA. — Marcus & Millichap has brokered the sale of The Oppenheim Building, a 193,000-square-foot historic office property in downtown Scranton. The property was built in 1888 and was 27 percent occupied at the time of sale. Craig Dunkle and Jackson Day of Marcus & Millichap handled the sale on behalf of the undisclosed seller through Ten-X auction platform. The buyer, a Pennsylvania-based developer, will convert the building into a Class A multifamily property.
By Marc Isdaner, senior managing director, principal, Colliers International; and Ian Richman, senior managing director, Colliers International Strong job and population growth in recent years have caused the Philadelphia/Southern New Jersey industrial market to continually rise on the radars of both investors and developers. As the nation battles COVID-19, we see demand for industrial space growing as more users look to service last-mile customers in densely populated areas. This market is no exception. With the right guidance and counseling, investors can achieve strong returns here, even as variables like user demand and land/construction costs continue to rise, bringing valuations and sales prices along with them. Projects Get Bigger We continue to see developers take down large tracts near major thoroughfares in this region, oftentimes building on speculative bases. Examples of such projects are Mansfield Logistics Park, a 960,000-square-foot, two-building spec development by Clarion Partners off Interstate 295 in Burlington County that is nearing completion; and The Cubes at East Greenwich, a two-building spec development located off I-295 in Gloucester County. The latter project is being developed in an area that was largely inactive until 2018, as land sites and established industrial parks such as Pureland were essential built out. Scout …
EASTON, PA. — NAI Summit has brokered the sale of a 180,000-square-foot industrial facility located at 3700 Glover Road in Easton, about 70 miles north of Philadelphia. According to LoopNet Inc., the property is situated on 15 acres and features 26-foot clear heights, 15 loading docks and parking for 242 cars and numerous trucks. Mike Adams of NAI Summit represented the buyer, personal care products manufacturer A.P. Deauville, which is relocating and expanding from New Jersey into this facility. The new owner-occupant is effectively doubling its footprint and expects to bring more than 100 new jobs to the region. The seller was not disclosed.
PHILADELPHIA — Designer Shoe Warehouse (DSW) has opened a 15,616-square-foot store at Fashion District Philadelphia, a shopping, dining and entertainment destination in the Center City neighborhood. DSW’s opening comes on the heels of the debuts of tenants such as Kate Spade Outlet and Industrious, as well as the re-openings of Candytopia and Wonderspaces. Pennsylvania Real Estate Investment Trust (PREIT) owns Fashion District Philadelphia.
PITTSBURGH — Dick’s Sporting Goods (NYSE: DKS) recorded its highest quarterly earnings in company history for its fiscal second quarter, which ended on Aug. 1. The company reported $276.8 million in consolidated net income and boosted its earnings per share by 155 percent relative to the second quarter of 2019, rising from $1.26 per share in 2019 to $3.21 per share in 2020. The Pittsburgh-based retailer cited booming e-commerce sales, which rose by 194 percent year over year, as a key driver in the company’s growth. In addition, Dick’s noted that through the first three weeks of the third quarter, same-store sales have already increased by 11 percent compared to that period in 2019. Dick’s has also opened several new stores in recent weeks, including two in Massachusetts and one in New Jersey, as well as a combined Dick’s Sporting Goods and Golf Galaxy store in Georgia. The company’s stock price opened at $47.70 per share on Wednesday, Aug. 26, up from $32.62 per share a year ago.
ALLENTOWN, PA. — Locally based brokerage firm Markward Group has negotiated a 150,000-square-foot industrial sublease at Iron Run Distribution Center in Allentown. Del Markward and Mike Capobianco of Markward Group, along with Brian Lenahan of Premier Development, represented the sublandlord, True Value, in the lease negotiations. The trio also represented the subtenant, third-party logistics firm ShipHero. Prologis owns the building.
BLUE BELL, PA. — CBRE has arranged two life sciences leases totaling 13,067 square feet at PROTECS Innovation Center, a 50,000-square-foot lab and life sciences building in the northern Philadelphia suburb of Blue Bell. Molecular diagnostics firm KorGene committed to 8,259 square feet, and pharmaceutical and biotechnology firm ThirdLaw Technologies inked a deal for 4,808 square feet. Paul Touhey and Cody Lehrer of CBRE represented the landlord, 4 Valley Square Group LP, in the lease negotiations.
WEST CHESTER, PA. — Tower Health Urgent Care will open a 4,200-square-foot clinic at Bradford Plaza, a 161,000-square-foot retail center located at 700 Downington Pike in West Chester. The grocery-anchored center houses tenants such as Petco, Dollar Tree and Orangetheory Fitness. Sidney Singer of New Jersey-based Levin Management Corp. represented the landlord in the lease negotiations. Michael Reese of Jackson Cross Partners represented the tenant.
MUNCY, PA. — NAI Mertz has brokered the sale of two industrial buildings totaling 425,800 square feet that front Interstate 80 in the central Pennsylvania city of Muncy. The Class A distribution centers total 235,000 and 190,800 square feet and are leased to e-commerce users. Howard Fertman, Chris Matus, Steve Cole and Dave Weaver of NAI Mertz represented the seller, S. Balolia Holdings LLC, in the transaction. EuroOptic LLC, an e-commerce provider of firearms, purchased the larger of the two buildings, and Patton Warehousing purchased the smaller one.
TEMPLE, PA. — Marcus & Millichap has arranged the $11.5 million sale of a 21,850-square-foot retail center in the eastern Pennsylvania city of Temple. The newly built property is situated on 3.2 acres and houses tenants such as Chick-fil-A, Panera Bread, Mod Pizza and Visions Credit Union. Derrick Dougherty and Mark Krantz of Marcus & Millichap represented the seller, a limited liability company, and procured the buyer, a 1031 exchange investor.
