Institutional Property Advisors Brokers Suburban Philadelphia Lifestyle Center Sale
“The Shops at Valley Square was built in 2007 as part of a 120-acre-plus master-planned development that contains a Wegmans supermarket, a 167,500-square-foot power center, and Meridian of Valley Square, an age-restricted community of 200 townhouses,” said Brad Nathanson, IPA senior managing director investments. “Currently at 70% occupancy, the acquisition presents the buyer with an opportunity to leverage the development’s prime location, co-tenancy and new restaurants to drive the retail leasing to market-level occupancy in the high 90s. The rebound for lifestyle retail has been tremendous post-COVID, as with the work-at-home model, it has transformed properties like Valley Square where lifestyle retailers and restaurants are benefitting from new office life. In addition, with a new zoning overlay, the buyer has the additional upside of adding multifamily to make this a true mixed-use village to incorporate a work-live-play lifestyle.” Nathanson represented the seller and procured the buyer, Lamar Companies.
The Shops at Valley Square was constructed in 2007 at the intersection of Street Road and Easton Road, a hub for over 2.3 million square feet of retail space occupied by Target, Walmart, Home Depot, Lowes, BJ’s, and Amazon Fresh, the chain’s first location in Greater Philadelphia. With an average annual household income over $130,000, Warrington is one of Bucks County’s wealthiest towns and The Shops at Valley Square is the only lifestyle center in Bucks County.
The Shops at Valley Square has 203,701 square feet of ground-floor retail and 89,447 square feet of second-floor professional office space. Regional and national lifestyle tenants include Ulta, DSW, Bath & Body Works, Sleep Number, and Eastern Mountain Sports. The center’s outdoor “Main Street” shopping experience is supported by dining venues such as P.F. Chang’s, Playa Bowls, Panera Bread, Gran Rodeo Mexican Grill, Turning Point, and Árdana.
“The acquisition of Shops at Valley Square builds upon Lamar’s recent focus on acquiring high-quality, market-dominant shopping centers at an attractive basis,” said Frank Maresca, Lamar’s senior vice president. “We continue to see strong leasing demand for quality retail properties with active hands-on management and leasing teams and are excited by the opportunity to bring a diverse and exciting tenant mix to Valley Square. The traffic and energy at the property will be further enhanced by the potential development of multifamily. This closing represents Lamar’s sixth shopping center acquisition over the last four months, totaling over $165 million. Our appetite for retail remains strong and we hope to close an additional $150 million plus over the remainder of the year.” Sean Beuche, license no. RM424190, is Marcus & Millichap’s broker of record in Pennsylvania.
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Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com.