Property Value Rises Near the Slot Machines

Aside from contributing to the state economy, attracting customers and causing traffic jams at Interstate 81 since their opening last year, the Mohegan Sun at the Pocono Downs has caused property prices near the casino to soar higher and for some developments to take place on the state road.

Some asking prices for the properties are already close to about $1 million per acre, which makes it one of the most expensive stretches of real estate located in Northeastern Pennsylvania. As the Mohegan Sun continues the operation of their $150 million slots hall, it is expected that the landowners and landlords near places where play slots are expecting to raise their prices.

A real estate agent, Charles Adonizio III, said that he keeps urging his family to acquire property in the area because it will all change in a few years. But the prospect of development in the area is not that big. An area located on the east side of Route 315, close to Interstate 81 has a very limited space for development.

The other areas are obstructed by rock formations or owned by private owners like the Oblates of St. Joseph, which is one of the biggest owners in the area. Parts of the area do not have any basic services like a sewage system, but it does not stop the speculation regarding the real estate property.

According to the state Department of Transportation, the average traffic in the area on the route near the Jumper Road during the year that the Mohegan Sun bought the Pocono Downs was around 7,500 cars per day. That traffic count is expected to increase once the Mohegan Sun pursues its expansion plans, but the PennDOT has no specific figure.

Mohegan Sun is already working on the traffic situation. The property value, like a rusted, steel building may not look like very much, but right now, the building along with the 7 acres of land the Elliott and Frantz site is already valued at $6.5 million or about $928,000 per acre.

Back in April 3, 2006, the lot was only valued at $1.5 million or about $333,000 per acre. Land on Highland Park Boulevard on the Wachovia Arena sells for only about $500,000 per acre. Landlord Gene Cokslom who owns about 130,000 sq ft of both commercial and office space as well as plazas says his property is more profitable now than before the opening of the Mohegan Sun casino.

Thursday, 22 March 2007
Darren G. Strachan