Saturday, March 14, 2015

New York investor buys 160,000 square-foot Pottstown Plaza



Pottstown Plaza, a shopping center that has suffered several setbacks over the years, has sold.

Terms of the transaction were not disclosed.

The Cotswold Group Inc. of Harrison, N.Y., bought the 160,000 square-foot center that sits on 17 acres at 799 State St. in Pottstown, Pa. Kevin McClernon and Peter Stevens of CBRE Inc. represented Cotswold and the seller, Hudson Advisors.


The property was constructed in 1989. It has 63,000 square feet of vacant space that was brought on by the construction of Upland Square, a nearby shopping center that was constructed in 2009 and gave retailers an option that was newer and in the same market.

A Giant that used to anchor Pottstown Plaza vacated in 2009 and the space has remained dark ever since. A TJ Maxx used to occupy a portion of the center but it move to Upland Square and that space has also remained empty. Tractor Supply, Applebees, Fulton Bank and Dominos Pizza are currently tenants in the property.

Kimco Realty acquired Pottstown Plaza in April 2004 for around $15 million, according to Securities and Exchange Commission documents.

This is the eighth shopping center Cotswold has bought in the Philadelphia area, said Robert Y. Shasha, who runs the New York real estate company. It owns two community centers in Bucks County, such as the Village at Newtown, and some centers in Northeast Philadelphia.

The company likes to buy "high quality lemons to turn into lemonade," Shasha said. Pottstown Plaza fits that criteria.

To that end, the company plans to invest in some exterior improvements to the center to boost its curb appeal and try to fill up the vacancies, he said. A budget is still being worked out for how much the company plans to spend.

In the meantime, Cotswold continues to look in the Philadelphia market for additional acquisitions.

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