Endurance, Blue Vista Break Ground on PA Distribution Center
- Nov 20, 2018
A partnership of Endurance Real Estate Group and Blue Vista Capital has received a $54.4 million loan for the construction of a speculative industrial project in Pittston, Penn. Construction has begun at the site, dubbed Interstate Distribution Center, with completion slated for the third quarter of 2019. HFF represented Endurance in receiving the financing from Square Mile Capital Management.
Endurance and Blue Vista acquired the 227-acre site in 2012 and obtained permits for demolishing the existing manufacturing and distribution space, formerly occupied by Techneglass. In December of last year, Endurance entered into a partnership with Thackeray Partners to further expand the companies’ industrial portfolio in Pennsylvania.
Interstate Distribution Center will comprise several buildings located at 140 Industrial Drive. The main project is a roughly 1 million-square-foot, Class A bulk distribution facility. A 125,125-square-foot build-to-suit building will be constructed next to the speculative distribution center. The project is adjacent to Interstate 81 and less than 2 miles from Interstate 476.
The warehouse will feature a cross-dock configuration and 40-foot clear heights. The building will be outfitted with 193 dock doors, 108 of which will be equipped with full dock packages. Columns will be spaced at 54 by 45 feet. Dock packages will be able to handle up to 45,000 lbs. A 69-kilovolt substation is located on the premises, providing up to 27,000 amps of electricity via a double feed. Interstate Distribution Center will also feature 421 car parking spaces and 129 trailer park spaces.
The partnership hired Cushman & Wakefield to market and lease the building. According to data provided by the firm, the northeastern Pennsylvania submarket reported a vacancy of 3.6 percent as of the third quarter of the year. Cushman & Wakefield data also states that the region recorded almost 1.7 million square feet of net absorption year-to-date.
“The eastern Pennsylvania industrial market, particularly the northeastern submarket, continues to see increased demand for state of the art distribution buildings from end users. Our decision to go spec with a 40-foot clear building should be well received in the marketplace given the historically low vacancy rates and known timetable for delivery,” said Ben Cohen, president of Endurance, in a prepared statement.
Image courtesy of Endurance Real Estate Group