New I-70 exit changes fortunes for some New Stanton property owners

Martin Sivic ran Four Star Car Wash on a sleepy New Stanton side street for decades.

Then PennDOT spent $53.7 million to redesign the Interstate 70 interchange — and put the car wash right in the middle of the action.

“We went from being a piece of property on a dead-end street to a corner lot with three entryways,” Sivic said.

The new interchange has led to a rush of development and land sales as once-remote properties turned into prime locations.

Four Star Car Wash closed this week after 33 years. Giant Eagle bought the Byers Street property and plans to build a GetGo gas station and convenience store with beer sales, said Sivic, who declined to disclose how much he made in the transaction.

“Basically, every piece of property in New Stanton is up for sale at this point,” he said. “Everybody is trying to take advantage of the new roundabout system PennDOT put in.”

For sale signs pepper properties along the new Rachel Drive roundabout. Bulldozers and crews work atop a nearby hillside to build a Hampton Inn and Suites.

Until the interchange project, land near Bair Boulevard, Byers Avenue and Rachel Drive wasn't worth much, said John Lechner, a real estate broker with Lechner and Associates. In one case, an owner let a 10-acre lot go for less than $5,000 at a county tax sale, Lechner said.

“Then, lo and behold, all of a sudden interchange work was done and what he let go for taxes is probably worth ... about $500,000 an acre,” Lechner said. “What a sweet deal that was.”

Youngwood resident Lesley May's company, Elan Properties, bought that lot. He has acquired several properties in New Stanton over the years on the hunch that a turnpike project would eventually come to town.

“People were letting them go. I picked them up in the anticipation that someday I'd make money,” May said.

He recently sold part of the 10-acre lot to Giant Eagle for the GetGo project. He said he's not allowed to disclose the sale amount until the deal is finalized this month. Overall, he said he has made more than $2 million on his New Stanton properties.

Jay Shah hopes to cash in as well. He owns the Garden Inn on Byers Avenue, next to the car wash, and wants to retire.

”Business is not great. The property is getting old, there's a lot of competition. You need a new product here,” he said.

He said he has contemplated selling for a while but figured the moment was right with the new roundabout driving interest. “The value of land is pretty good right now,” Shah said.

The expansive PennDOT project aimed to ease congestion and make driving through New Stanton safer by widening the highway and replacing old, short on- and off-ramps that led directly into New Stanton; now, the ramps lead into three new roundabouts west of the borough's main commercial street.

Work began in 2015, and although PennDOT is still doing a few finishing touches, the interchange opened in November.

But the project has not benefitted everyone.

The Sunoco station on Center Avenue lost half its business as drivers avoided the heavy construction zone, and it still hasn't bounced back, manager Sam Patel said.

“People had a hard time getting in and getting out. We thought it was going to be better, but no,” he said.

Patel hopes things will improve this summer. As drivers get accustomed to the new layout, they may return to New Stanton, he said.

There are no guarantees, though.

On the old interchange, vehicles exited right near the Sunoco. Now they're farther up the street. Existing gas stations may not win back customers if GetGo and other competitors move into town, Patel said.

“We are struggling right now,” he said.

Lechner said he expected businesses on and around Center Avenue, near the old interchange ramps, to fare worse than they have. It's too early to say for sure, but most existing businesses seem to be doing all right, he said.

“Their sites are not as good as they were, and speaking with a lot of people who are there, they're still fairly happy with where they're at,” Lechner said. “What I thought was going to happen was a mass exodus from Center Avenue trying to locate closer to the exit. So far, that hasn't happened.”

New Stanton has several hotels, but the Hampton Inn and Suites that is expected to open by January between Bair Boulevard and Broadview Road is the first new one in more than a decade.

Developer KN Hospitality bought the land about two years ago, anticipating the increased traffic the new interchange would bring.

“This part of town was at the end of the road, and it's now first all of a sudden,” said developer Kirtan Patel, who is not related to Sam Patel.

KN Hospitality has four vacant acres near the hotel property up for sale. Restaurants, gas stations and retail outlets have expressed interest, Kirtan Patel said.

“I think the future is very bright,” he said.

Jacob Tierney is a Tribune-Review staff writer. Reach him at 724-836-6646, jtierney@tribweb.com or via Twitter @Soolseem.