Cushman & Wakefield's Industrial Advisory Group has arranged the sale of a three-building industrial portfolio in the dynamic Northeastern PA submarket from Endurance Real Estate Group, LLC to NorthPoint Development.
The buildings, 7 Alberigi Drive and 15 Alberigi Drive in Jessup and 32 Earth Conservancy Drive in Wilkes-Barre, total 544,974 square feet. The transaction represents the largest portfolio of industrial real estate that has traded in Northeastern Pennsylvania in several years, according to Gerard J. Blinebury, executive director with Cushman & Wakefield. Blinebury led the team of Gary Gabriel, Jeffrey L. Williams and Daniel J. Walsh, which represented the seller.
"This was a great opportunity for both the buyer and seller," said Blinebury, who noted that 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, D.C. 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," Blinebury noted. "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."
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients' ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.
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