Monday, July 12, 2021

Brandolini Cos. Sells Five Philadelphia Suburban Shopping Centers

By Clarice King CoStar Research

 A joint venture between Paramount Realty and Medipower Group has purchased has purchased five grocery-anchored shopping centers in the greater Philadelphia region for $114.25 million.

The partnership acquired the portfolio from Brandolini Cos. The buyers also secured $80.5 in acquisition financing for the five retail centers through five separate fixed-rate loans with three banks.

The portfolio garnered significant interest from the investment world, especially since each shopping center was anchored by high-performing grocers Giant, George's Market and Aldi and home improvement retailer Lowe's with increasing or stable historical sales. Other major highlights of the portfolio were long remaining lease terms of the anchor tenants and long-tenured small shop tenants with proven history of operations.

All five shopping centers in the portfolio are located within highly populated residential neighborhoods. The portfolio included:

  • Giant-anchored Lionville Shopping Center in Lionville.
  • Marketplace at Westtown in West Chester, which is also anchored by Giant.
  • Spring Towne Center in Sinking Spring, which is anchored by Giant and Lowe's.
  • George's Marketplace-anchored Dreshertown Plaza in Dresher.
  • Aldi-anchored Limerick Crossing in Limerick.

"We are excited to increase our footprint within the Philadelphia MSA and we look forward to adding value through capital improvements and procuring a new diverse tenant mix for existing vacancies to cater to the evolving new retail landscape," Maurice Zekaria, president of Paramount Realty, said in a statement.

Investor demand in the mid-Atlantic region has grown both in quantity and diversity, with much of that interest being generated from both alternative product-type owners as first-time retail buyers looking for yield or out-of-market capital.

"With over 20 offers received on the portfolio, many from those segments of the investment community, it is clear to us that we will continue to see exceptional demand and yield compression in the grocery-anchored space."

"The Philadelphia MSA continues to remain hyperactive in the retail sector," Behr said. "It was a very strong first half of the year, with our team closing 16 retail assets, and we anticipate the second half of the year to be just as active, as we see fresh capital entering the market."

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