$33M Retail Portfolio Trades in Eastern PA

Quarry Crossing Shopping Center, Downingtown, PA

PHILADELPHIA, PA— An affiliate of Penguin Real Estate Investors has sold a portfolio of retail assets including nine buildings in the Philadelphia metropolitan area to Paramount Realty of Lakewood, NJ. The portfolio features the Quarry Crossings shopping center in Downingtown, PA, and five other assets, known as “Restaurant Row,” in Trevose, PA. Terms were not disclosed, but the asking price for the portfolio was “in excess of $33 million,” according to Marcus & Millichap , which represented Penguin in the transaction. 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,” says 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 in the firm’s Washington, DC, and Philadelphia offices, respectively, represented the seller. The team of senior agents also procured the buyer. Brenton Baskin , regional manager of Marcus & Millichap’s Philadelphia office, is the firm’s broker of record in Pennsylvania. 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,” says 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 . The group is located directly off the Pennsylvania Turnpike with visibility from Route 1. “It’s rare that we find a tenant mix this strong in a core market trade,” says Dougherty. “This type of property at this price point appeals to all levels of investors.”