By Paul Schwedelson – Reporter, Philadelphia Business Journal
A new 10,000-square-foot retail building facing the King of Prussia Mall is up for sale, an opportunity for a passive investor to own a property leased to at least two national chains.
The building at 129 S. Gulph Road is listed for $13.29 million, which equals $1,329 per square foot, a price per square foot that would rank among the highest in the region across commercial properties.
Construction on the 10,000-square-foot building is set to be completed by early summer, said MSC’s Jesse Dubrow, the property’s listing agent. Ten-year leases are in place for Mediterranean fast-casual chain Cava and breakfast and lunch chain restaurant First Watch, which both plan to open around the same time, Dubrow said. A tenant has not been signed for the third retail space.
The new development is owned by Wayne-based Gulph Creek Hotels and sits on the southwest corner of Gulph Road and Route 202, adjacent to the 136-room Residence Inn and 68-room The Prussia Hotel. MSC listing agent Douglas Green said 80,000 vehicles traverse the intersection daily, making it one of the busiest in Pennsylvania.
“The beauty of the asset, it checks every box that retailers look for,” Green said. “It’s an incredibly well-rounded site.”
A 168-room Best Western hotel previously sat on the property and was partially torn down to make room for the Residence Inn and the new retail building. The remaining portion of the Best Western was turned into The Prussia Hotel, a boutique hotel.
Gulph Creek Hotels intended to build the retail building and sell the property once it was completed. The project is just across Route 202 from the Simon Property Group-owned King of Prussia Mall and the planned Netflix House.
The two restaurants will be walkable from the two hotels, a key addition since neither hotel has an on-site restaurant.
“[Gulph Creek Hotels] was able to create a walkable, mixed-use site, which benefits the two hotels they’ve invested in,” Green said, “but also create an investment vehicle to get a return on their invested capital.”
Cava is set to take 2,100 square feet, First Watch is leasing 3,900 square feet and 4,000 square feet remains for a third tenant. Green, representing Gulph Creek Hotels in the leasing, said negotiations are ongoing for the third retail location.
Green said Gulph Creek Hotels is looking to avoid a third food and beverage tenant to manage crowds in the site’s parking lot. Instead, the space is likely to be leased to a tenant that provides a service to hotel guests and nearby residents.
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