What’s been called the best retail location in the Scranton area doesn’t have a sign in front of it or an asking price, but it is definitely for sale.
The site of the former McKinney plant sits on the busiest intersection in the region, where an average of 70,000 vehicles a day pass on Interstate 81 and another 8,000 pass on Davis Street. It’s the sort of visibility and traffic that retailers, restaurants and just about any brand lust after.
As the economy begins to rebound, people speculate that the property may be picked up soon and wonder what may end up there, changing the view from I-81.
There is no listing agent for the property, purchased by Davis 81 LLC in February 2013, for $2 million from McKinney Products.
Several sources in real estate and economic development said the principal behind the single-purpose entity is Dunmore businessman Dominick Denaples. Commercial real-estate broker John Cognetti said he spoke to Mr. Denaples about the property, and Mr. Denaples told him he would consider offers. Typically, a broker who delivers a buyer, even for an unlisted property, receives a commission.
The degree of the site’s uniqueness depends on whom you ask.
Mr. Cognetti calls it the most valuable piece of available retail property in Lackawanna County.
Andy Skrip, a vice president at the Scranton Lackawanna Industrial Building Co., SLIBCo, which developed the property in the 1950s, called it the most valuable retail space in the metro area.
Big-box Interest
The site received nibbles from some big box stores, multiple sources confirmed, with the idea of filling in the gap between market areas in Dickson City and Wilkes-Barre Twp., much the same way Wal-Mart began with a presence in Wilkes-Barre and Scranton then went to Pittston Twp. and Taylor. But the big-box stores curtailed their expansion plans.
Now, the brightening economy has more people talking about the site and its potential.
Joe Dente, a Moosic borough councilman and planning commission member, thinks the activity and interest in the site will re-ignite as the economy improves. He’s hopeful the high-profile property will soon generate revenue for municipalities and jobs for residents.
“This site is a natural for new development,” Mr. Dente said. “Aside from other things, it may be the economy that deterred development. As the economy improves, people start to look at properties likes this as big opportunities.”
What makes it so special?
■ Traffic Count: On the southwest corner of the where I-81 passes under Davis Street, the former McKinney site sits on what may be the busiest intersection in Northeast Pennsylvania. According to state Department of Transportation traffic counts, an average of 70,000 vehicles pass by on I-81 on a typical day and nearly 9,000 on Davis Street.
“The access makes this a prime piece of real estate, and makes commercial the highest and best use,” said Jim Nasser Sr., of Nasser Real Estate in Scranton.
■ Visibility: All those vehicles give the location a high profile and the type of visibility that a big consumer or retail brand would lust for ─ a lighted sign overlooking a busy interstate and office park.
■ Access to People: Situated on the south side of the Scranton’s urban area, the site offers access to the population in and around Wilkes-Barre. From this location, a business can draw from an expanded customer and labor base in much the same way the development on the other side of Interstate 81 — Glenmaura, Shoppes at Montage, PNC Field and Montage Mountain – does, said James Cummings, vice president of marketing for Mericle Commercial Real Estate and longtime economic developer.
“The people to the south of this area have become accustomed to making the 8- to 25-mile drive to work or shop,” he said. “That makes property like the McKinney site more appealing to a marquee retailer because people no longer hesitate to make that drive.”
■ Situation: The site is level. After acquiring the site, the owner razed the hulking, 230,000-square-foot McKinney facility, giving would-be visitors a better sense of the 30-plus acres.
Shortcoming
The site’s prospects aren’t all rainbows, holiday sales and shopping carts. All that traffic has a downside. Davis Street is overburdened as it is. The road is insufficient for the traffic it carries now and, absent investment by the state, the new occupant would have to invest millions in road improvement. Mr. Cognetti estimates a developer would spend for as much on road-widening and traffic lights as for land acquisition.
Mericle’s Mr. Cummings agrees.
“The key to making this site work is to get people safely and quickly in and out of the property,” he said.
Any proposed development will require a viable traffic plan, said Councilman Dente.
“Anyone who is on Davis Street from 2:30 to 5 p.m. or 7 a.m. to 8:30 a.m. knows how heavily congested this road is,” Mr. Dente said.
Davis Street began as an access road in the South Scranton Industrial Park developed by the SLIBCo., the building arm of the Greater Scranton Chamber of Commerce. Prior to the construction of I-81, the selling point for the park was its proximity to Route 11. SLIBCo built the speculative “shell” building and initially lured Trane to occupy it. The site was bought by McKinney in 1964 as the interstate was being built. Later, the Taylor Bridge made Davis Street even more important, connecting communities on the other side of the river and traffic continued to increase. The interstate enhanced the value of the land along Davis Street, Mr. Skrip said. Commercial uses have replaced industrial uses in recent years.
Mr. Dente hopes the development will produce revenue for the borough and jobs for residents.
The buyers need not be a big box store. Mr. Cognetti said the location could be attractive to “highway commercial” such as lodging, restaurants, convenience stores, or service facilities.
With 30 acres, the site may be large enough to subdivide, Mr. Nasser said, with pads for restaurant, retail and convenience stores.
