Tuesday, August 11, 2020

Top Philadelphia Commercial Real Estate Leases and Sales

 Top Property Sales Recognized for Philadelphia

TOP SALE: 1901 Market St., Philadelphia, PA

Sale Price: $360,000,000

Sale Date: June 25, 2020

Size: 801,000 SF

Buyer: Independence Health Group, Philadelphia, PA

Seller: Piedmont Office Realty Trust, Atlanta, GA

Deal Commentary: Piedmont Office Realty Trust exited the Philadelphia market with the $360 million sale of 1901 Market St. as the company looks to focus on the Sun Belt region. Independence Health Group seized the opportunity to reacquire the 45-story tower that houses the headquarters of its Philadelphia-based subsidiary, Independence Blue Cross.

4200 Braden Blvd. E, Easton, PA

Sale Price: $62,500,000

Sale Date: June 4, 2020

Size: 475,800 SF

Buyer: Black Creek Group, Denver, CO

Seller: Dermody Properties, Reno, NV, and PCCP, Los Angeles, CA

Deal Commentary: Black Creek Group finalized a deal in early June to acquire the Easton warehouse of e-commerce services provider, Radial. Dermody Properties developed the 475,800-square-foot property, named LogistiCenter at 33, in 2016, and sold the complex along with its partner, real estate finance and investment management firm PCCP, for $62.5 million. Radial has fully leased the property since late 2019.

TOP SALE: Portfolio of 7 Properties

Sale Price: $42,925,000*

Sale Date: April 10, 2020

Size: 107,168 SF

Buyer: Endurance Real Estate Group, Radnor, PA, and PCCP, Los Angeles, CA

Seller: Novaya Real Estate Ventures, Boston, MA

Deal Commentary: The Southern New Jersey Core Infill Portfolio attracted its new owner because of its desirable location with historically high occupancy and its rapid rent growth. The portfolio is also consistent with the venture's investment strategy. *Part of a portfolio sale

TOP SALE: Portfolio of 3 Properties

Sale Price: $27,025,000

Sale Date: April 24, 2020

Size: 380,274 SF

Buyer: Brennan Investment Group, Rosemont, IL

Seller: The Magellan Group, Los Angeles, CA, and Drake Real Estate Partners, New York, NY

Deal Commentary: Betting on the continued resilience of the industrial sector and strength of the Lehigh Valley industrial market, new owner Brennan Investment Group acquired a three-building, fully leased portfolio in Lehigh Valley Industrial Park II to increase its Northeast holdings to nearly five million square feet.

TOP SALE: 405 North King St., Wilmington, DE

Sale Price: Not disclosed

Sale Date: May 8, 2020

Size: 155,000 SF

Buyer: Amtrak, Philadelphia, PA

Seller: The Commonwealth Group, Wilmington, DE

Deal Commentary: Amtrak reached a deal in May to acquire the Renaissance Centre in Wilmington, Delaware, where the railroad service had occupied space as a tenant. With its lease set to expire, Amtrak elected to buy the building outright and expand its footprint to 79,465 square feet. This was a strategic move by Amtrak to reduce costs by having employees work out of owned property.

TOP SALE: 518 Township Line Road, Blue Bell, PA

Sale Price: $24,850,000

Sale Date: April 2, 2020

Size: 123,087 SF

Buyer: AFA Real Estate Partners, Yardley, PA

Seller: Kairos Real Estate Partners, Blue Bell, PA, and Artemis Real Estate Partners, Chevy Chase, MD

Deal Commentary: AFA Real Estate Partners added Blue Bell Plaza to its portfolio. This investment was attractive due to the updated building amenities and quality of tenants including accounting firm RSM, developer Skanska USA and Blue Bell Surgery Center.

TOP SALE: 1240 McKee Road, Dover, DE

Sale Price: $21,347,000

Sale Date: June 3, 2020

Size: 42,140 SF

Buyer: Anchor Health Properties, Charlottesville, VA, and Harrison Street Capital, Chicago, IL

Seller: MedCore Partners, Dallas, TX.

Deal Commentary: MedCore Partners sold the newly completed and fully leased Post Acute Medical Rehabilitation Center in Dover, Delaware, to a joint venture between Anchor Health Properties and Harrison Street Capital.

TOP SALE: 824 North Market St., Wilmington, DE

Sale Price: $16,550,000

Sale Date: April 8, 2020

Size: 207,005 SF

Buyer: Chopp Holdings, Lakewood, NJ

Seller: Ellington Management Group, Old Greenwich, CT

Deal Commentary: Chopp Holdings scored a value-add investment with its $16.55 million purchase of 824 N. Market St. in downtown Wilmington. The 10-story property is 67% leased with the U.S. Bankruptcy Court occupying more than 65,000 square feet.

TOP SALE: Portfolio of 3 Properties

Sale Price: Not disclosed

Sale Date: June 12, 2020

Size: 78,194 SF

Buyer: The Leser Group, Brooklyn, NY

Seller: Rockland Capital, Philadelphia, PA

Deal Commentary: Rockland Capital sold a portfolio of office and retail properties in Philadephia, totaling 78,194 square feet, to Brooklyn-based investor The Leser Group in June. The new owner has real estate development and property management experience and focuses on commercial and industrial properties.

TOP SALE: 1 Storm St., Stroudsburg, PA

Sale Price: $15,180,000

Sale Date: June 26, 2020

Size: 37,976 SF

Buyer: IRA Capital, Irvine, CA

Seller: Doctors Investment Group, Stroudsburg, PA

Deal Commentary: IRA Capital bought the Pocono Ambulatory Surgical Center in Stroudsburg because it fits the company's investment criteria, which is primarily focused on healthcare real estate. This acquisition further expands the equity firm's national footprint, which currently spans across 25 states and exceeds 6 million square feet of property.

Top Retail Leases Recognized for Philadelphia

TOP LEASE: 104-108 Bartlett Ave., Exton, PA

Space Leased: 37,275 SF

Deal Type: New Lease

Sign Date: April 22, 2020

Size: 79,601 SF

Tenant: Lidl

Deal Commentary: German discount supermarket chain Lidl is continuing its U.S. expansion spree with the signing of a 37,275-square-foot deal in Exton, Pennsylvania. The grocer is filling a void at Main Street at Exton that was previously left when Toys R Us went bankrupt a few years prior.

TOP LEASE: 871 East Lancaster Ave., Downingtown, PA

Space Leased: 37,126 SF

Deal Type: New Lease

Sign Date: June 2, 2020

Size: 140,858 SF

Tenant: The Edge Fitness Clubs

Deal Commentary: Continuing its East Coast and Midwest expansion plan, The Edge Fitness Clubs has signed its sixth deal in Pennsylvania with a 37,126-square-foot deal at Ashbridge Square.

TOP LEASE: 1301-1325 Churchmans Road, Newark, DE

Space Leased: 22,000 SF

Deal Type: New Lease

Sign Date: June 15, 2020

Size: 256,119 SF

Tenant: Ross Dress for Less

Deal Commentary: Opening its third location near Christiana Hospital, Ross Dress for Less signed a deal to take over space previously left dark by Babies R Us in late 2018. Ross will join center anchor Home Depot and other stores and restaurants.

TOP LEASE: 770 State Road, Lehighton, PA

Space Leased: 25,700 SF

Deal Type: New Lease

Sign Date: June 10, 2020

Size: 42,502 SF

Tenant: Harley-Davidson

Deal Commentary: Harley-Davidson leased back space at 770 State Road until its new location at 2800 Eberhart Road in Whitehall Township opens in fall 2020.

TOP LEASE: 180 Susquehanna Blvd., Hazleton, PA

Space Leased: 24,072 SF

Deal Type: New Lease

Sign Date: June 12, 2020

Size: 32,968 SF

Tenant: Geisinger Health Systems

Deal Commentary: Geisinger Health Systems is expanding its 65 Forward program with a new health center located in a former Staples store in Hazleton. Forward 65 is a holistic approach to senior primary care created exclusively for people 65 and older. Geisinger is also building a new 65 Forward center in downtown Wilkes-Barre.

TOP LEASE: 832-880 Plaza Blvd., Lancaster, PA

Space Leased: 14,400 SF

Deal Type: New Lease

Sign Date: April 15, 2020

Size: 143,275 SF

Tenant: Just Furniture

Deal Commentary: Just Furniture is opening a new 14,400-square-foot location at Parkview Plaza where the retailer will offer affordable home furnishings to residents in the Lancaster area.

TOP LEASE: 3285 Black Gap Road, Chambersburg, PA

Space Leased: 31,080 SF

Deal Type: New Lease

Sign Date: April 4, 2020

Size: 31,080 SF

Tenant: Sportsman's Warehouse

Deal Commentary: Sportsman’s Warehouse took over the 31,080-square-foot building at 3285 Black Gap Road. The property had been vacant since late 2019 when Gander Mountain moved out.

TOP LEASE: 7700-7780 Crittenden St., Philadelphia, PA

Space Leased: 6,510 SF

Deal Type: New Lease

Sign Date: June 11, 2020

Size: 47,739 SF

Tenant: Anytime Fitness

Deal Commentary: Anytime Fitness renewed its lease at Market Square in Chestnut Hill. The fitness chain, with over 3,000 locations, has occupied space at this center since 2014.

TOP LEASE: 125-131 Shoemaker Road, Pottstown, PA

Space Leased: 12,280 SF

Deal Type: New Lease

Sign Date: June 26, 2020

Size: 48,239 SF

Tenant: Harbor Freight

Deal Commentary: Harbor Freight, a provider of quality tools for over 40 years, will join Ollie’s Bargain Outlet at West Pottstown Shopping Plaza after signing a 12,280-square-foot lease. With the lease, the retailer adds another location to its existing 1,000-plus stores.

TOP LEASE: 4321-4403 Swamp Road, Doylestown, PA

Space Leased: 7,200 SF

Deal Type: New Lease

Sign Date: June 29, 2020

Size: 152,468 SF

Tenant: FiveBelow

Deal Commentary: Five Below signed a lease for 7,200 square feet to open a new location at Cross Keys Place. The value-driven retailer, known for offering a variety of products at a cost of $5 or less, will add another location to its existing 950-plus stores across 38 states.

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