R etail D evelopment R eimagined

M id A tlantic Real Estate Journal — Retail Development Reimagined —December 24, 2021 - January 20, 2022 — 9A


Nathanson reps. seller and procures the buyer, United Hampshire US REIT Institutional Property Advisors brokers sale of 258,494 s/f shopping center in Philadelphia

PHILADELPHIA, PA — JLL Capital Markets an- nounced that it has closed the sale of and arranged acquisi- tion financing for Red Lion Plaza, a 236,277 s/f, grocery- anchored shopping center in a densely populated northeast location in Philadelphia JLL represented the seller, Finmarc and KPR . Addition- ally, working on behalf of the new owner, JLL placed the 12- year, fixed-rate, non-recourse loan with a regional bank. The 97-percent-occupied Red Lion Plaza is home to a strong and diverse tenant lineup that includes a new national grocer tenant, Burlington, Ross Dress for Less, Pep Boys and Planet Fitness. Originally constructed in 1962, Red Lion Plaza re- cently underwent an expan- sion in 2021 that added 20,000 s/f of in-line retail pad space occupied by Mattress Firm, Panera Bread, Aspen Dental and Tropical Smoothie Cafe. “Penrose Plaza was recently redeveloped and renovated in 2017 with a host of national tenants being added to the roster, including Planet Fit- ness, DD’s Discount, Citi Trends, Fine Wine & Good Spirits, and Chase Bank,” said Brad Nathanson , IPA senior managing director. Anchoring Penrose Plaza is also a newly expanded and renovated 68,174 s/f Shoprite Supermarket, a tenant at Penrose Plaza since 2004. “The property is situated along the South Philadelphia Island Avenue corridor, which is underserved with retail in a high-barrier-to-entry urban H I L A D E L PH I A , PA — Institutional Property Advisors (IPA) , a division of Mar- cus & Millichap announced the sale of Penrose Plaza, a 258,494 s/f shopping center in Philadelphia at a purchase price of $52 million. P

Penrose Plaza

infill market with over 144,000 people within three miles,” added Nathanson. “Given the lack of new, urban grocery-an- chored supply nationally, Pen- rose Plaza was well received in the investment community given its dominant, market- share leading grocery-anchor and balanced roster of tenants

with long-term leases, along with a cohesive co-tenancy that has operated successfully together at other centers with- in the city of Philadelphia.” Nathanson represented the seller, a joint venture between Onyx Equities, Abrams Realty & Develop- ment , and Siguler Guff &

Office headquarters and is within close proximity to the Philadelphia International Airport, and interstates 95, and 76. The property was 94% occupied at the time of the sale. Sean Beuche , license no. RM424190 is Marcus & Millichap’s broker of record in Pennsylvania. MAREJ

Company , and procured the buyer, United Hampshire US REIT . Strategically positioned at the intersection of Island Ave- nue and Lindbergh Boulevard with combined daily traffic counts exceeding 57,000, Pen- rose Plaza is located across from the 937,000 s/f U.S. Post

JLLCapital Markets arranges the sale and acquisition loan for Red Lion Plaza in Northeast Philadelphia

drove the process and pricing,” Behr added. “We continue to witness best-of-the-best pricing met- rics for grocery-anchored shop- ping center trades within the Philadelphia MSA, as the steady migration of new capital providers continues to enter the region,” Munley said. “If demand for the product continues to rapidly increase, we anticipate further cap-rate compression into 2022 given the lack of available inven- tory.” The JLL Capital Markets Debt Advisory team represent- ing the new owner was led by Michael Pagniucci . “The tenant lineup and infill location at Red Lion Plaza led to very strong lender interest from a diverse list of local and national capital sources,” Pag - niucci said. “We were success- ful in meeting the borrower’s request for a competitive 12- year fixed rate loan.” MAREJ

Red Lion Plaza

Red Lion Plaza is situated on 18.7 acres at 9908-9960 Roos- evelt Blvd. (Highway 1) within a hyper-active regional retail corridor due to population density and transportation infrastructure. The center has immediate connectivity and is along Highway 1, which expos - es the property to about 90,000 vehicles a day. Additionally, the infill area surrounding the center includes nearly 166,006

residents within a three-mile radius who earn an average annual household income of $82,186. The JLL Retail Capital Mar - kets team representing the seller was led by Jim Galbal- ly, Chris Munley and Colin Behr . “The Finmarc and KPR team did an incredible job repositioning Red Lion Plaza,” Galbally said. “With the addi-

tion of a national grocer, Ross, Burlington and Panera Bread, Red Lion Plaza is the premier retail asset in Northeast Phila - delphia. “Roosevelt Boulevard is a hyperactive, superregional trade area, and the strength of the market combined with Red Lion’s best-in-class tenant lineup, attracted extremely aggressive capital from across the country, which ultimately

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