(For more retail coverage, click GlobeSt.com/RETAIL.)
HARRISBURG, PA-Cedar Shopping Centers Inc. continues to grow its Harrisburg portfolio with the acquisition of the 34-acre Clock Tower Property on Linglestown Road. It paid $13.5 million, or about $397,059 an acre, for the parcel and will demolish an existing manufacturing plant in order to build a shopping center aggregating approximately 115,000 sf, named Blue Mountain Commons.
Cedar has received an executed lease from Giant Food Stores LLC for a 98,000-sf supermarket, the grocer's new superstore prototype, at the center. The lease is for 20 years with six five-year renewal options. Leo Ullman, Cedar's president and CEO, declined to disclose the value of the lease, but says, "it's an excellent lease for us and reflects the success of the Giant store in our Camp Hill center." Groundbreaking for the Giant unit is expected to take place by the end of third quarter 2007 and reach completion by the end of 2008.
There will be an additional approximately 18,000 sf of retail and two outparcels, which Ullman says, "will accommodate a bank branch or similar use." The center will utilize about 20 acres, and the construction cost is not finalized, he says. Of the remaining 14 acres, which are located on an upper level of the parcel, Ullman tells GlobeSt.com, "it could be used for a storage or office facility, and we'll either keep it for a property to rent or sell off that portion."
In September, the Port Washington, NY-based shopping center owner acquired Oakhurst Village Plaza, a 111,892-sf shopping center at 2900 Linglestown Road for $22.4 million. "It is a stone's throw from the Clock Tower land," Ullman says, "and both are in an upscale residential area. Our principal focus of concern is to make sure that both fit well in the community and preserve the special features of the area."
Oakhurst Village is 100% leased, anchored by a Giant Food Store of approximately 60,000 sf. Giant will leave the Oakhurst location when the Blue Mountain store is completed and Cedar will re-tenant that space. Ullman says the current rental rate in that location is less than $10 per sf.
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