Newland Capital Obtains Financing for Pennsylvania Industrial Project

Rendering of Mount Pocono Commerce Center, which is set to come online in the spring of 2024. Image courtesy of JLL Capital Markets

Newland Capital Group has obtained financing for the construction of Mount Pocono Commerce Center, a 1.2 million-square-foot Class A distribution center in Pocono, Pa.

JLL Capital Markets worked on behalf of the borrower to secure a $66 million senior construction loan from Axos Bank—Monroe County records show—as well as a mezzanine loan from Fidelity Investments. Additionally, Hartford Investment Management Co. provided joint venture equity for the project, according to the same public source.

In September 2022, Newland Capital group purchased the 85-acre development site for $10.6 million. The project broke down a month later, with a delivery date set for the spring of 2024. Upon completion, the distribution center is slated to feature 40-foot clear heights, 196 loading doors, four drive-in docks, 384 trailer stalls and a 200-foot truck court depth.

At the time of the site purchase, the company announced that it had secured a tenant for a seven-year lease. According to The Boro & Towne News, the developer mentioned earlier this year at a city council meeting that the tenant was actually dependent on tax abatement and construction financing. The identity of the tenant is still unknown, apart from the fact that it’s an international 3PL company relocating from a nearby location.

The JLL team that arranged the financing included Senior Director David Pelaia and Director Chad Morgan.

Convenient location in the Northeast

The property is taking shape at 3379 Pocono Summit Road, near interstates 380 and 80. The distribution center will be 50 miles from Allentown, Pa., and less than 100 miles from New York City. The facility will be part of the Northeast Pennsylvania industrial market which includes approximately 130 million square feet of industrial space.

According to a recent JLL report on the Eastern and Central Pennsylvania industrial market, Northeast Pennsylvania had a vacancy rate of 4 percent as of the end of the second quarter, with 4.3 million square feet of completed projects and 5 million square feet of industrial space under construction.