Construction Of Distribution Building Begins On The Former Techneglas Site
JENKINS TWP. — Endurance Real Estate Group, a Radnor, Pennsylvania-based developer, has secured a $54.35 million loan to begin constructing a 1,078,200-square-foot distribution building at the former site of Techneglas at 140 Industrial Drive in Jenkins Twp.
Brian Evans, acquisition and asset management analyst for Endurance Real Estate Group, said the building will be constructed on speculation, meaning it does not yet have a commitment from an occupant.
Endurance and Blue Vista Capital, a Chicago-based investment management firm, announced in a press release that the companies have closed on a construction loan with Square Mile Capital Management LLC. Construction of the building has begun and is expected to be completed in the third quarter of 2019.
The development, called the “Interstate Distribution Center,” is being constructed on a 225-acre development in the heart of the Interstate-81 Corridor industrial submarket. The project is located at the confluence of Interstate-81 and Insterstate-476, which offers direct access to the major arteries as well as Interstates 80, 84 and 380.
The Cushman & Wakefield team of Gerry Blinebury and Dan Walsh are marketing the building for lease and more information can be found at www.idcpittston.com.
Endurance and Blue Vista purchased the site in 2012 which, at the time, contained more than 1 million square feet of existing manufacturing and distribution space and was 50 percent leased.
Techneglas, a company that made glass screens for televisions, closed its plant on the site in 2004 and filed for bankruptcy after going through years of layoffs.
Previoulsy known as OI-NEG and Owens-Illinois, the plant was built in 1968. In its heyday in the mid to late 1990s, more than 2,500 people worked there. After it closed in 2004, it was transformed into a warehouse, distribution and manufacturing center.
Endurance pursued approvals to demolish the existing structures on the site and transform it into a modern bulk warehouse/distribution park.
Jenkins Twp. officials recently granted Endurance approval to proceed with the first phase of its development plan, which includes construction the more than 1 million square-foot building and an additional 125,125-square-foot building, which is being marketed on a “build-to-suit” basis.
The second phase of development will include a third building on the northern part of the site anticipated to be about 500,000 square feet.
Brian Cohen, president of Endurance, said the Northeast Pennsylvania industrial market continues to see an increased demand for “state-of-the-art distribution buildings from end users.”
He said Endurance’s decision to go with a building with 40-foot clear heights should be “well-received in the marketplace given the historically low vacancy rates and known timetable for delivery.”
David Erlbaum, vice president of development, added that the Interstate Distribution Center should be “very well-received from a logistics standpoint for e-commerce and other distribution users due to its location.” He said the site’s historical infrastructure as a result of its prior manufacturing operations “really distinguishes it from its competitors.”
The market around the development in the Greater Pittston area has seen considerable growth in recent years with Amazon, Lowe’s, Home Depot, Walmart and FedEx all occupying distribution facilities nearby.
It is located near CenterPoint Commerce and Trade Park, built by Mericle Construction, that is home to 51 tenants in 37 buildings encompassing 9.9 million square feet. When Geisinger’s new office in early 2009, the park will have almost 6,000 employees, said Jim Cummings, spokesman for Mericle Commercial Real Estate Services.
Mericle is putting the finishing touches on a 1,023,000 square-foot industrial building also being built on speculation at 200 Technology Drive in CenterPoint East, Jenkins Twp. Construction also is underway on a 403,000-square-foot spec industrial building at 575-595 Research Drive in CenterPoint East in Pittston Twp.
Endurance, which was founded in 2002, has acquired more than $500 million of assets totaling over 10 million square feet. Its portfolio consists of 3.2 million square feet of warehouse/distribution, flex and office assets.
Affiliates of Endurance have closed on seven separate transactions over the last three years, totaling more than 2 million square feet of warehouse, distribution and flex space.
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