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JENKINS TWP. — Developers of the former Techneglas site have secured a $54.35 million loan to build a speculative 1.078 million-square-foot bulk distribution facility, representatives have announced.
Previously known as OI-NEG and Owens-Illinois, Techneglas was built in 1968 off Route 315 to manufacture television face plates, the thick glass coverings on picture tube televisions. In its heyday in the mid to late 1990s, more than 2,500 people were employed there. It closed in 2004 and was transformed into a warehouse, distribution and manufacturing center.
Bala Cynwyd-based IDC Property LP purchased the Techneglas property from Pittston Industrial LLC for $5.2 million in January 2013, and the site at 140 Industrial Drive was renamed the Interstate Distribution Center, county property records show.
The structure and its 170-foot-high silos were demolished in 2014 and 2015 to make way for new development.
The Pittston Area School Board had rejected a tax break pitched for the property in 2015, killing the proposal before it came before Luzerne County Council.
Affiliates of Endurance Real Estate Group LLC and Blue Vista Capital announced the loan closing and construction plans Tuesday with Square Mile Capital Management LLC.
According to releases:
Based in Radnor, Endurance is a real estate owner/developer focused on projects in the Mid-Atlantic region, with a concentration in office and regional bulk warehouse/distribution assets. Blue Vista Capital is a Chicago-based investment management firm.
With senior financing provided by CIT Group Inc., Square Mile Capital Management LLC originated the loan. Square Mile is an institutional real estate and investment management firm based in New York.
The Interstate Distribution Center is an “impressive” 225-acre development located at the confluence of Interstate 81 and the Pennsylvania Turnpike’s Northeast Extension, providing direct access to major arteries and metropolitan areas along the Eastern seaboard.
Endurance recently obtained township approval to proceed with the first phase of its development plan, which includes construction of the 1.078 million-square-foot building and an additional 125,125-square-foot structure. The smaller structure is being marketed on a “build-to-suit” basis.
The second development phase includes a third building on the northern part of the site anticipated to be around 500,000 square feet.
Construction of the largest building already has begun and is scheduled to be completed in the third quarter of 2019.
‘Increased demand’
The Cushman & Wakefield team of Gerry Blinebury and Dan Walsh are marketing the building for lease, with information available at www.idcpittston.com.
“The Eastern Pennsylvania industrial market, particularly the Northeastern Pennsylvania submarket, continues to see increased demand for state-of-the-art distribution buildings from end users,” said Ben Cohen, president of Endurance. “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.”
According to Cushman & Wakefield, the Northeastern Pennsylvania submarket reported an overall vacancy rate of 3.6 percent at the end of the third quarter of 2018.
In addition to the Interstate Distribution Center’s prime location, the site stands out from competitors because it kept infrastructure from its prior manufacturing operations, including a 69 KV substation fed by two separate grids, 10-inch water and sewer mains, ample gas service capacity and rail access, said David Erlbaum, also of Endurance.
Eric Cohen, principal of Square Mile Capital, said Endurance and Blue Vista are “experienced, extremely well-respected developers and operators of industrial properties in Pennsylvania and throughout the broader Northeast markets.”
Nearly 33 percent of the U.S. population and 50 percent of the Canadian population are located within a 24-hour drive of the property, the release said. The submarket has experienced considerable growth in recent years, with major companies occupying distribution facilities nearby, it added.