3/11/15

An affiliate of Endurance Real Estate Group, LLC is pleased to announce the acquisition of a three (3) building bulk warehouse/distribution portfolio totaling 544,640 SF in Northeastern Pennsylvania. The portfolio includes 7 and 15 Alberigi Drive in Jessup Borough, consisting of 166,500 SF and 129,500 SF, respectively, and a 248,640 SF building at 32 S. Preston Drive in Wilkes-Barre. The portfolio is situated in the Northeast PA submarket of the I-81/I-78 Distribution Corridor, offering users immediate proximity to I-81 and close proximity to I-476 (PA Turnpike), I-80, I-84 and I-380. The portfolio is currently 50% occupied.

The buildings were constructed in the late 2000’s and feature Class A warehouse/distribution specifications including 30’ clear ceiling heights, ESFR sprinkler systems, and ample (and expandable) loading capacity with full dock packages. 7 Alberigi Drive is fully leased to two tenants including BAE Systems in the majority of the square footage. 15 Alberigi Drive is fully available and easily demisable, having been designed with multiple storefront entrances to efficiently accommodate tenant suites ranging from 32,500 SF up to a full-building presence. 32 S. Preston Drive offers a 124,080 SF contiguous block of available space which is demisable down to approximately 40,000 SF units, with the other 50% of the building occupied by Rehrig Penn Logistics. Planned immediate 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 providing an easily expandable and customizable template for new tenants.

“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” stated Benjamin Cohen. President of Endurance. “Two of the buildings suffered from persistent vacancy largely due to the timeframe in which they were delivered in the 2006-2008 time frame, though 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,” added Cohen.

Endurance is also pleased to announce the engagement of the Cushman & Wakefield team of Daniel Walsh, Gerry Blinebury, Pat McBride, Adam Campbell and Leah Balerno to handle the Portfolio leasing. In addition to the existing available spaces at 15 Alberigi Drive (fully available for lease or sale) and 32 S. Preston Drive (124,000 SF for lease), a portion of 7 Alberigi Drive (64,750 SF) is coming available in late 2015 and is currently being marketed for lease as well.

The Endurance team has considerable ownership experience in the 1-81/I-78 Distribution Corridor overall and the Northeast PA submarket specifically, with just under 2 MSF combined of existing warehouse/distribution product and entitled FAR in the Northeast PA region in its portfolio inclusive of the subject portfolio. In nearby Pittston, PA, Endurance’s re-development project at the Interstate Distribution Center in Pittston, PA is underway with both demolition of the former 1 MSF building and sitework in progress to deliver a mass-graded site in late spring 2015 capable of accommodating 1.2 MSF out of the fully entitled 1,506,000 SF footprint.