Thursday, January 23, 2020

Philadelphia Investor Buys Grocery-, Gym-Anchored Shopping Center for $18.3 Million

Philadelphia-based Gorman & Co. has purchased the grocery- and gym-anchored Larchmont Commons retail center in Mount Laurel, New Jersey, from RPC Real Estate and Merion Realty Partners’ asset management group for $18.25 million, or about $142 per square foot.

Financing was arranged of $12.9 million, 10-year, fixed-rate acquisition loan with an institutional capital source on behalf of the new owner.

The 128,172-square-foot center at 3105-3117 Route 38 is anchored by Aldi, Planet Fitness and Dollar Tree. Major tenants at the 88% leased property include Hair Cuttery, The UPS Store and Kumon Learning Center.

The center spans 24.7 acres less than 12 miles from the Philadelphia CBD.

"There has been a steady increase in investor demand for grocery-anchored product within the greater Philadelphia marketplace, resulting in correlating cap-rate compression since the start of 2019," Munley said in a statement. "With the steady flow of new capital we have witnessed entering the retail investment market, we anticipate that to continue into 2020."

For more than 30 years, the principals of Gorman & Co. and its predecessor companies have been engaged in the land acquisition and ground up development of more than 3 million square feet of office, retail, residential, self-storage and mixed-use properties throughout the region with an aggregate value of more than $400 million, according to its website.

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