Shopping center

Pennsylvania mall changes hands for $67 million – Commercial Property Executive

colonial towns. Image via Google Street View

Prasavi Inc. acquired Colonial Commons, a 410,432 square foot shopping center located at 5070 Jonestown Road in Harrisburg, Pennsylvania. Cedar Realty Trust sold the asset for $66.5 million, according to public records. According to CommercialEdge data, the property previously traded in 2011 for $46.1 million. Institutional Real Estate Advisorsa subsidiary of Marcus & Millichapnegotiated on behalf of the seller and procured for the buyer as part of the current transaction.

Developped by Olympic Real Estate and Development Company., Colonial Commons went live in 1989 and was completely renovated in 2014. The shopping complex was 98% leased at the time of the sale; tenants include Dick’s Sporting Goods, Hobby Lobby, HomeGoods, Marshalls, and Old Navy, among others, and a PetSmart store will open on-site in 2023. AEM property group manages the property, while Bennett Williams is in charge of the rental.

The Electrical Center is on the east side of Harrisburg at the intersection of Jonestown Road and Route 22 near Interstates 81 and 83, which connect New York City to the Washington, DC-Baltimore area. Some 300,000 people, with an average annual family income of over $75,000, live within a 10-mile radius.

IPA chief executive Brad Nathanson represented the seller in the transaction.

Retail remains reliable

Despite a growing risk of an economic downturn, the country’s retail sector has remained strong, in part due to consumers’ desire to shop in person after a period of widespread restrictions. Overall retail spending continued its upward trend, with shopping centers in particular seeing a vacancy rate of 4.8% in the second quarter of 2022, while the net uptake of the entire area increases to 9.6 million square feet, according to a Cushman and Wakefield report. The market remains a relatively recession-proof investment, even in times of high inflation and high interest rates.

Acknowledging the performance of the sector, Nathanson said in prepared remarks that there had been tremendous velocity of investment in power centers given the resilience of the retail sector during the pandemic and the strong demand from retailers. value, including clothing and furniture, expanding rapidly over the past 12-18 months.