CBRE Arranges Sale, Financing for Suburban Philly Retail Center
- Jul 05, 2016
Brad Nathanson, Chris Decoufle and Kevin Reavey represented the seller, iStar Financial Inc. The buyer was a joint venture between affiliates of Poag Shopping Centers and real estate funds managed by Ares Management. John Farrell of CBRE’s Debt and Structured Finance represented the buyer in sourcing the acquisition financing.
Built in 2007, The Shops at Valley Square is one of the largest lifestyle centers within the suburbs of Philadelphia. The property features 203,953 square feet of first-floor retail and 88,935 square feet of second-floor office space.
With the dominant nature of the enclosed mall sector within the markets of King of Prussia, Cherry Hill and Willow Grove, most of the lifestyle centers that had been constructed over the past 15 years have been smaller in nature, raising the prominence of The Shops at Valley Square among the lifestyle tenants.
The shopping plaza is part of a larger master-planned development that is anchored by Wegmans Supermarket, an additional 167,500-square-foot Power Center and approximately 200 townhouses. Wegmans Supermarket expands the property’s drawing power, attracting dining, beauty and fashion tenants and shoppers to the area.
Located at the prime intersection of Route 611 and Street Road in Warrington, the center is situated within one of Pennsylvania’s most affluent areas, Buck County, with average household incomes of $106,000 and average home values of $325,000. Retailers at the center include DSW, ULTA, Banana Republic, White House Black Market and Loft. A sampling of restaurants includes P.F. Chang’s, Chipotle, Panera, The Melting Pot and Carmel Kitchen & Wine Bar.
“This community favorite is a beautifully designed gathering space with excellent stores and restaurants. We look forward to adding special touches and events that will make for an even better experience for families and individuals. There has been tremendous population growth in this area of the country during the past ten years, and we are pleased to expand our presence here and throughout the Northeast region,” Josh Poag, president & CEO of Poag Shopping Centers, said in prepared remarks.
“We are excited to partner with Poag, a real estate manager with proven expertise and success in commercial and retail investments across the U.S., in order to improve this property and maintain its position as one of the premier retail centers in the region. The Shops at Valley Square is well located and known for offering an attractive mix of retail and dining alternatives,” added Steve Wolf, partner in the Ares Real Estate Group.
Image courtesy of CBRE