By Linda Moss CoStar News
A shopping center in the Philadelphia suburbs has sold for $162 million as investors continue to prize retail sites that are anchored by grocery stores.
Finmarc Management, based in Bethesda, Maryland, and KPR Centers of New York City have acquired Providence Town Center, a 759,945-square-foot, open-air shopping center in Collegeville, Pennsylvania. The property, anchored by a Wegmans grocery store, is the No. 4 most-visited retail center in Pennsylvania. Wegmans has operated at the site since it was developed between 2008 and 2009.
The seller was Brandolini Cos. of Berwyn, Pennsylvania, and the deal marks the second-largest open-air retail transaction by square footage in the Philadelphia market behind East Gate Square, which sold in 2015 for $188 million. That property spans Moorestown and Mount Laurel in New Jersey.
Investors continue to snap up shopping centers with grocery stores as anchors, because that type of tenant sparks repeat visits and generates foot traffic at a property — attributes that have become all the more valuable during the pandemic.
A diverse group of private, institutional and real estate investment trust investors expressed interest in Providence Town Center.
“Throughout the process, it became evident from the abundance of new, unique capital showing up to participate that demand for grocery-anchored product and large-format shopping centers in general is steadily on the rise. With the current lack of supply of like-kind inventory available to market, we anticipate this product to continue to price at a premium.”
Providence Town Center, which is 92% leased, has a tenant roster that includes Best Buy, Old Navy, Dick’s Sporting Goods, HomeGoods, Michaels, LA Fitness and Movie Tavern.
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