Monday, September 18, 2023

Shopping Center, Three Industrial Buildings Slated for Former New Jersey Mall Site

 By Linda Moss CoStar News

The site of a former mall in Burlington County, New Jersey, is being redeveloped to include a shopping center and three large industrial buildings.

Ferber Co., a privately held real estate developer based in Ponte Vedra Beach, Florida, on Friday said that The Shops at The Crossings will occupy a portion of the site previously home to Burlington Center Mall at 2501 Mount Holly Road in Burlington Township. Located along Route 541, the redevelopment project will be constructed in phases to include three industrial buildings totaling 1.9 million square feet, which will be developed by MRP Industrial, and 30 acres of retail, The Crossings.

The mall, opened in 1982, became vacant in 2018 after the last tenant, Sears, closed its doors. Township officials collaborated on how to create a mixed-use development to improve the underutilized area, approving the plans and demolishing the old structure in 2021, according to Ferber, which has a regional office in Basking Ridge, New Jersey.

"We are currently working on construction of Phase 1 of the project, with many of the tenants projected to open December 2023 and are hoping to confirm a possible medical office, dual-branded hotel, and/or fitness center for Phase 2," Justin Hollander, Ferber vice president and retail development lead, said in a statement.

The tenant roster for the first stage includes Raising Cane's, Panera Bread, Freddy's Frozen Custard & Steakburgers, Discount Tire and Sleep Number.

The Burlington mall's demise helped spark legislation signed into law in August 2019 aimed at revitalizing New Jersey's vacant retail centers, struggling corporate office parks and other troubled commercial properties.

Clarion Partners of Dallas acquired the Burlington property in February 2019 for $22 million from Moonbeam Capital Investment of Las Vegas, according to CoStar.

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Haverford Properties Acquires ShopRite-Anchored Retail Center in New Jersey

By Linda Moss CoStar News

Grocery-anchored shopping centers continue to be a favorite with real estate investors, with another one recently trading in New Jersey.

Haverford Properties, based in Haverford, Pennsylvania, has acquired Hartford Corners, a 214,896-square-foot retail property at 1310-1330 Fairview Blvd. in Delran from Principal Asset Management, based in Des Moines, Iowa. 

The sale price and other terms of the deal weren't disclosed.

Investors have been seeking out grocery-anchored shopping centers, which they deem desirable. That's because having a supermarket draws shoppers to a property on a consistent basis and creates foot traffic for other stores in the center.

Hartford Corners' anchor tenant is a ShopRite supermarket, which has 5 1/2 years left on its long-term lease. In addition to having a grocer, the property’s tenant lineup includes a variety of medical, food and beverage, fitness, services and discount retailers. Planet Fitness, Five Below, Virtua Health, Five Guys and Mattress Firm are on its roster.

Hartford Corners is 95% occupied and is shadow-anchored by a Lowe's Home Improvement store.

“Grocery-anchored shopping centers continue to drive the most demand in the retail asset class. Hartford Corners highlighted this trend with a competitive process to acquire a best-in-class anchor in ShopRite. Additionally, the center has performed remarkably well over the last 10 years with consistent occupancy at over 90%, showcasing the resiliency of the asset class.”

The demand for these types of properties remains robust and growing within the mid-Atlantic region.

"The diversity of new capital looking to enter the asset class and geography, coming from multi-faceted disciplines and sources, is moving the market."

Principal Asset Management is part of Principal Financial Group, which manages $525.2 billion in assets.

Haverford Properties focuses on retail-anchored shopping centers, ground-up multifamily development and mixed-use land development and master planning.