Marcus & Millichap has closed the largest retail property sale so far this year in the Philadelphia MSA.
DOWNINGTOWN, Pa., July 14, 2011 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has closed on the sale of a 386,016-square foot retail power center (top left photo) in Downingtown, Pa. The sales price of $51.75 million represents $133 per square foot.
Kevin Boeve, a vice president investments in the Ontario office of Marcus & Millichap, Mark Taylor (top right photo), a first vice president investments, and Dean Zang (middle left photo), a vice president investment in the Philadelphia office, represented both parties in this transaction.
The buyer was Morris Ashbridge Associates L.P., a Delaware-based limited partnership. The seller was Pacific Crest Holding LLC of Beverly Hills, Calif.
“This sale indicates that private investors – not just REITs and institutional players – are truly starting to regain confidence in anchored power center segment,” Boeve explains.
“We strategically marketed the property to a select buyer pool, rather than broadcasting it openly to the market seeking to lure a buyer.
"Ultimately we generated 17 offers, most of which were from private partnerships. Properties anchored by credit tenants with long-term leases in strong locations are clearly garnering more attention from private investors.”
“This deal had complexity,” adds Taylor. “There was a loan assumption and a 1031 exchange involved on the buyer’s side. Furthermore, the transaction exemplifies the strength of the Marcus & Millichap platform." We collaborated to find our West Coast seller a buyer based on the East Coast, which demonstrates our unparalleled ability to access private capital from all over the United States.”
Located at 900 East Lancaster Ave., the 49-acre Ashbridge Square (middle right photo) retail center is anchored by Home Depot, Best Buy, Staples and Bottom Dollar, a grocery store owned by Food Lion.
Additional tenants include Christmas Tree Shops, PJ Whellihan’s Pub, PLCB Store, Jo-Ann Fabrics and Crafts, Super Cuts and Tuesday Morning. The site also includes an additional 7,200- to 10,000-square foot pad for future development.
“Ashbridge Square is located in a fast-growing suburb of Philadelphia,” notes Taylor. “Its location – combined with the long-term, triple-net leases of Home Depot, Best Buy, Bottom Dollar and Christmas Tree Shops – will provide the new ownership with stability over the long term.”
Demand should only continue to accelerate in the Exton-Downingtown retail corridor, says Taylor. There are 43,000 people living within a three-mile radius of Ashbridge Square with a current average household income of $110,000.
Contact: Stacey Corso, Public Relations Manager, (925) 953-1716
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