Post Brothers has closed on buying two properties along
Philadelphia’s premier retail corridors from Pennsylvania Real Estate
Investment Trust.
Post paid an estimated $45 million to acquire 1501-1505
Walnut St., which totals 27,000 square feet, of which 8,000 square feet is
retail space and15,000 square feet is office space.
It also bought 1520 Chestnut St., which has 27,000 square
feet of space above grade and another 13,500 square feel below grade.
PREIT (NYSE: PEI), which bought the properties in 2014,
said in a statement that it reaped $20 million from the transaction.
Under its ownership, PREIT signed AT&T Mobility to
occupy nearly 5,000 square feet of the Walnut Street space, while Club Monaco
and Cameo Water Wear are among other tenants in the space. The property is
zoned CMX-5, which allows for denser development if the new owner ever wants to
pursue that.
Though it owns the Gallery in Philadelphia, these two
Philadelphia sites veer from PREIT’s suburban, regional mall model.
It has been selling off properties and under performing
malls as its repositions itself as a “$500 a square foot company” by the end of
2018.
“This transaction illustrates our acute knowledge of the
Philadelphia market and our capital allocation approach,” said Joseph F.
Coradino, CEO of PREIT, in a statement. “We are pleased to have recognized an
opportunity to add value to these properties and use the sale proceeds to
reduce debt and continue our balance sheet improvement efforts.”
Jim Galbally of JLL represented Post Brothers in the
transaction.
Source: Philadelphia
Business Journal
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