JESSUP BOROUGH AND WILKES-BARRE, PA. — An affiliate of Endurance Real Estate Group LLC has acquired a three-building bulk warehouse/distribution portfolio totaling 544,640 square feet in Northeastern Pennsylvania. The purchase price was not disclosed.
The portfolio includes a 166,500-square-foot property at 7 Alberigi Drive and a 129,500-square-foot property located at 15 Alberigi Drive, both in Jessup Borough; and a 248,640-square foot building located at 32 S. Preston Drive in Wilkes-Barre.
“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 time frame in which they were delivered (2006-2008),” says Cohen.
“[But] 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 is currently 50 percent occupied. The buildings were constructed in the late 2000s and feature Class A warehouse/distribution specifications, including 30-foot ceiling heights, ESFR sprinkler systems and expandable loading capacity with several full docks.
The portfolio is situated in the Northeastern Pennsylvania submarket of the I-81/I-78 distribution corridor, which is in immediate proximity to I-81 and close proximity to I-476 (PA Turnpike), I-80, I-84 and I-380.
The 7 Alberigi Drive property is fully leased to two tenants including BAE Systems, which occupies the majority of the square footage. The 15 Alberigi Drive is available and includes multiple storefront entrances to efficiently accommodate tenant suites ranging from 32,500 square feet up to a full-building presence.
The 32 S. Preston Drive facility includes 124,080 square feet of space, which is demisable down to approximately 40,000-square-foot units. Rehrig Penn Logistics occupies 50 percent of the building.
Planned 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 to provide an easily expandable and customizable template for new tenants.
Daniel Walsh, Gerry Blinebury, Pat McBride, Adam Campbell and Leah Balerno of Cushman & Wakefield will be in charge of leasing at the property.
Endurance Real Estate Group is a Bala Cynwyd, Pa.-based real estate owner and developer. Endurance’s current portfolio consists of more than 4 million square feet of warehouse/distribution, flex and office assets.
— Danielle Everson