ShopRite-Anchored Philadelphia Retail Center for Sale

Monday, November 7, 2016

Update: This retail property is no longer available since it sold. For details about the HFF-brokered sale of the property, click here. 

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale Bakers Centre, a grocery-anchored, 236,719-square-foot retail center located in Philadelphia, Pennsylvania. Currently 94.7 percent leased, the retail property for sale is anchored by a high-performing ShopRite, Philadelphia’s leading grocer by market share. Bakers Centre is the go-to retail destination for the ultra-dense local community of East Falls/Hunting Park and is surrounded by a population of more than 400,000 people within a three-mile radius.

The positioning of the shopping center for sale at 2800 Fox Street is at the conjunction of a multitude of growing Philadelphia neighborhoods, providing the ideal destination for retail to meet the ever-growing demands of the urban, in-fill, high-density nature of the market. Bakers Centre has created a sense of place for the ever-evolving community and local consumer base.

Developed from 2013-2015, the center is in impeccable physical condition with no deferred maintenance, and Shoprite provides stability to the asset and a high level of income certainty by making up 30 percent of the GLA and 27 percent of the income.

Retail Property for Sale Investment Highlights

  • Leading Grocery Anchor:  The center is anchored by Philadelphia’s leading supermarket with the No. 1 market share and dominant regional sales trends. ShopRite is the preferred grocer for consumers throughout Philadelphia, and the retailer has proven its dominance by ranking No. 1 in 2015-2016 market share, accounting for 24 percent of the total market, with exponential sales growth for the city of Philadelphia. The location at Bakers Centre was hand-picked and aggressively canvassed by ShopRite for many years prior to the selection and development of the subject site. With high-volume of foot traffic, ShopRite has ingrained itself to be a pillar of the local community and continues to increase its production at this location, along with the ancillary tenancy that feeds off of its presence.
  • Premium Tenant Mix with Long-Term Leases:  In addition to ShopRite, the retail property is complemented by a host of major national retailers with extensive lease terms. Led by ShopRite, which has more than 16 years remaining until the expiration of their lease, the property has an average weighted lease term of 9.9 years, with only 5.9 percent of the square footage expiring in the first five years.
  • Irreplaceable Real Estate Positioned in an Active Development Corridor:  Bakers Centre is part of the East Falls/Hunting Park West corridor, a target growth area for the city of Philadelphia. The area has seen major ground-up development and redevelopments in recent years and is poised to continue the trend of increasing density and commercial concentration in the area. In addition to the recent development of Bakers Centre, the Kroc Community Center and U-Haul redevelopment, the area has more than 27 acres of potential commercial or residential space where the former Budd Factory was previously located, 10 acres of residentially-zoned land across from the property next to Abbotsford Homes, the future redevelopment of the EPPI building by New Courtland (14 acres) and the potential development of the Randolph High School. The new developments will further the traffic and commercial attraction of the property and will also aid the transformation of this historic area into an active commercial and residential neighborhood for Philadelphia.
  • Brand New Development with a Significant Opportunity to Increase Rental Rates over the Hold Period:  Developed from 2013-2015, the retail property for sale is in its finest condition and is a well-constructed, high-quality asset. The premium finishes not only create a superior sense of place, but will also leave limited capital risk for new ownership in the operation of the property. As this new development continues to grow in a micro-market that is still transitioning into a leading commercial corridor, new owners will have the opportunity to increase rental rates over their hold period as the value of the real estate continues to appreciate, and local area builds out, further becoming a one-of-a-kind location.

Bakers Centre is newly-delivered retail property for sale in Philadelphia with a leading grocery anchor and premium tenant mix located in an area filled with new development and expansion. If you are interested in this retail property or other commercial properties for sale in the Philadelphia area, please contact HFF Managing Director Chris Munley, Managing Director Jeffrey Julien, Associate Director Michael DiCosimo, Senior Managing Director Jose Cruz or Managing Director Ryan Ade.

By Topics