Tuesday, April 6, 2010

Former Tastykake factory to become shopping center

"Tasty Baking Co. on Tuesday said that it will sell its Nicetown bakery, offices and distribution complex to a retail developer for $6 million.

The buyer is a limited partnership formed by Metro Development Co. , which develops large-scale retail centers.

According to a statement released by Tasty Baking, TMKG Associates L.P. "anticipates developing the site into a retail center to serve the surrounding area."

Tasty Baking is selling its bakery at 2801 Hunting Park Ave. and its corporate offices and distribution center at 3413 Fox St.

But before that can happen, the sale is contingent on receiving a zoning change for properties from the City of Philadelphia. There's a 90-day "due diligence" period with closing occuring within 60 days after that. But if the zoning hasn't been changed, Tasty Baking can extend the timeline by up to six months.

The Metro partnership has the right to terminate the agreement at any time during the 90-day due diligence period.

Tasty Baking said it would use the cash proceeds from the sale to reduce the debt it took on to build its new $78 million manufacturing plant at the Navy Yard. The new facilities were backed by $31 million in publicly subsidized financing.

The publicly held Tasty Baking is the snack-foods maker behind Butterscotch Krimpets and Kandy Kakes. Its distribution footprint is the Mid-Atlantic region."

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