Israeli Firm Has Deal for Five Shopping Centers in Greater Philadelphia

 By Mark Heschmeyer CoStar News

Medipower, a commercial real estate company traded on the Tel Aviv Stock Exchange, is resuming acquisitions of grocery-anchored shopping centers in suburban Philadelphia.

The company has agreed to acquire five centers in the market from Brandolini Companies, according to a Hebrew language copy of a presentation made to Israeli investors last week and filed in Tel Aviv.

In a separate Tel Aviv filing, Medipower said it was considering raising up to about $30 million of additional capital in Israel to complete the deal through the sale of debt.

It would be the company’s first such purchases since January of last year before the onset of the pandemic and signals a return to expanding its necessity-based retail property acquisitions.

The purchase price was not disclosed, but the centers totaling about 720,000 square feet were valued at $115 million, or about $160 per square foot.

Most of the tenants are nationwide or regional chains including grocery stores Aldi and Giant, which make up about 40% of the space. The supermarkets have an average of about 9.5 years remaining on their leases, according to the presentation. Other tenants include McDonald’s, Starbucks, Lowe’s and Fine Wine & Good Spirits.

Medipower officials did not respond to requests for comment from CoStar News. Fred Snow, president of Philadelphia-based Brandolini, declined to comment.

The properties to be acquired include:

• Spring Towne Shopping Center in Reading, Pennsylvania.
• Limerick Crossing Shopping Center in Limerick, Pennsylvania.
• Lionville Shopping Center in Exton, Pennsylvania.
• Marketplace at Westtown in Westchester, Pennsylvania.
• Dreshertown Plaza in Dresher, Pennsylvania.

In the filing, Medipower said it was targeting further growth in the Northeast.

Medipower’s last purchase occurred in January 2019 when it acquired Crossroads Plaza, a 99,650-square-foot grocery-anchored shopping center in Lumberton, New Jersey, just 20 miles from Philadelphia.

Acquisition of the new assets is expected to be completed at the beginning of the second half of 2021.

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