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SOUTH HADLEY, MA-Philadelphia-based investor Alvero Acquisition Corp. beat out at least a dozen other potential buyers with an $11.6-million offer to take ownership of South Hadley Square. The retail 56,850-sf, single tenant property is occupied by Big Y World Class Supermarket. The acquisition includes two additional parcels and the option to purchase another 10 acres behind the supermarket building.

James Koury, with Jones Lang LaSalle's Boston office, tells GlobeSt.com that interest in the property was exceptionally high among developers because of the added acreage, which offered the potential for the future development of about 80,000 sf. "It's unusual to find a supermarket-anchored property with that much development potential," he says, adding that about a dozen offers were made on the building.. "It would have had more interest from single-tenant triple net buyers but because of the development potential, it was more of a developer-oriented buyer base."

Formerly owned by CHK and KHC South Hadley Associates, the property, which sold at a cap rate of about 6.6%, is leased to Big Y for the next 16 years, Koury says. Located in the center of South Hadley, the supermarket was built in 1997 and is the only one of three Big Ys in the area developed specifically for the grocery chain, he notes.