SCRANTON – Beacon Medical Real Estate has purchased a 3.26-acre lot in the Mount Pleasant Corporate Center for a two-story, 30,000-square-foot office building.
The Scranton-Lackawanna Industrial Building Co., which is the development arm of the Greater Scranton Chamber of Commerce, sold the lot to the Linden, N.J.-based Beacon for $792,000.
The chamber argued unsuccessfully before the Scranton School Board during the summer to garner Keystone Opportunity Zone status for the business park, which would have given developers a 10-year real estate and state tax forbearance. The park is on Linden Street, the former site of the Keystone Block Co.
In the end, the draw of the Commonwealth Medical College outweighed the economic hit from losing the tax incentive, said Beacon partner Daniel Siegel.
“We had this property under contract, and we were extremely disappointed,” Mr. Siegel said. “But we think there is a need for a facility like this in Scranton. So we have to work harder.”
The medical school will prompt an expansion in the medical sector and demand for high-quality office space, Mr. Siegel said. The building will be all-steel construction, brick clad, with a porte-cochere, gurney-sized elevators, energy-efficient windows and mechanicals, and about 130 parking spaces. The groundbreaking will be in November, and the building will be ready for occupancy by the spring of 2011, Mr. Siegel said.
Beacon has been involved with the development of 1.5 million square feet of space in New York, New Jersey and Pennsylvania. Tenants can receive a share of equity in the property, becoming partial owners of the building.
Chamber President Austin Burke said he’s grateful Beacon stuck with the project, but said the lack of economic incentives to offer prospective employers will mean that it will take longer to fill the other four or five lots at the business park.
“We will be successful in bringing in new employers, but it will take longer,” he said.
