The Quartermaster Plaza in South Philadelphia has been sold to a joint venture of two New York firms for $100.1 million as part of a larger portfolio acquisition.
Property records show DRA Advisors acquired the 456,000-square-foot shopping center from Massapequa, New York-based Cedar Realty Trust. The latter purchased the property in 2014 from Cleveland-based Forest City Ratner Cos. for $92.3 million.
The recent sale is part of 33 grocery-anchored shopping centers DRA Advisors and KPR Centers acquired from Cedar Realty Trust for $879 million.
Built in 2004, Quartermaster Plaza sits along West Oregon Avenue near Interstate 76. The 24-acre property is anchored by a BJ’s Wholesale Club and Home Depot. Other tenants include Staples, Planet Fitness and PetSmart. Sprouts Farmers Market has signed a lease for a 25,200-square-foot store, according to a marketing brochure from Metro Commercial Real Estate, a brokerage representing the property. Up to 90,000 square feet of additional retail space is also proposed, the brochure shows.
The deal includes the sales of 2300R W. Oregon Ave. (BJ’s) for $46 million, 2200 W. Oregon Ave. (Home Depot) for $27 million and 2200R W. Oregon Ave. (Planet Fitness, PetSmart, Sprouts) for $26.1 million, city property records show. A vacant parcel sold for $1 million.
The expansion plan, according to the listing, includes five different leasing spaces ranging from 8,200 to 15,000 square feet. The proposed expansion would be tacked onto the building housing the Sprouts, Planet Fitness and PetSmart. Metro Commercial declined to comment and DRA Advisors could not be reached for comment.
The property was 92.8% occupied with average lease rates of $15.09 as of Dec. 31, according to Cedar Realty Trust’s annual report.
Cedar Realty Trust’s sale of Quartermaster Plaza is part of an unwinding of its holdings. The company sold South Philadelphia’s Riverview Plaza back to developer Bart Blatstein for $34 million in May. Klein Properties of Baltimore also acquired nine properties from Cedar Realty Trust in conjunction with the DRA-KPR joint venture. Klein’s deal included Swede Square in East Norriton. Academy Plaza, an Acme-anchored shopping center in Northeast Philadelphia, was another property included in the DRA-KPR deal.
Cedar Realty Trust sold the remaining assets of the company to Virginia Beach-based Wheeler Real Estate Investment Trust.
DRA Advisors also owns the adjacent 2201 W. Oregon Ave., which includes an Advance Auto Parts and Family Dollar. In addition to Academy Plaza, the New York firm is the owner of Lawndale Plaza, both in Northeast Philadelphia. Those are part of 18 total properties DRA Advisors owns in the state of Pennsylvania.
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