Marcus & Millichap ink sale of retail portfolio in Pennsylvania
PHILADELPHIA, PA — Marcus & Millichap has arranged the sale of a portfolio of retail assets that includes nine buildings in the Philadelphia metropolitan area. The portfolio features the Quarry Crossings shopping center in Downingtown, and five other assets, known as “Restaurant Row,” located in Trevose. The properties were offered separately and as a portfolio to provide flexibility in the marketing process, which focused on private and institutional buyers. The purchaser acquired the assets in a single transaction that closed in late January 2016.“In two weeks we produced more than 10 offers for the portfolio and even more for the individual assets,” said Derrick Dougherty, senior associate in Marcus & Millichap’s Philadelphia office.
“Ultimately, our tactical marketing plan and broad market reach produced a winning bid that realized the seller’s desire for the assets to trade as a portfolio and achieve top-of-the-market value.”Dougherty, along with Dean Zang and Mark Taylor, both senior vice presidents investments in the firm’s Washington, D.C. and Philadelphia offices, respectively, represented the seller, an entity related to Penguin Real Estate Investors. The team of senior agents also procured the buyer, Paramount Realty of Lakewood, N.J., which has been active in the Pennsylvania market. Brenton Baskin, regional manager of Marcus & Millichap’s Philadelphia office, is the firm’s broker of record in Pennsylvania. The terms of the sale were not released, however, the asking price for the enitre portfolio was in excess of $33 million.Quarry Crossings, anchored by LA Fitness, consists of multiple tenants, including Buffalo Wild Wings, Olive Garden, AAA Mid-Atlantic, and an undeveloped retail pad.
“The undeveloped pad provided a value-add opportunity,” notes Zang. “Through our collaborative, nationwide platform, we were able to use this opportunity to attract local, regional, and national buyers.” Restaurant Row is a group of properties that serves as an outparcel to the area’s Walmart Supercenter, Lowe’s and part of the greater property initially developed by O’Neill Properties called Horizon Corporate Center. The portfolio includes Cracker Barrel, Wendy’s, Red Robin, Bertucci’s and Wells Fargo. “It’s rare that we find a tenant mix this strong in a core market trade,” concludes Dougherty.
“This type of property at this price point appeals to all levels of investors.”About Marcus & Millichap (NYSE: MMI)With over 1,500 investment professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 7,600 transactions in 2014 with a value of approximately $33.1 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors.