at a 6.8% cap rate.
ALTOONA, PA-If there are any doubts that the retail real estate sector has heated up, then the recent sale of a power center here near the dead center of Pennsylvania should quench those reserves. Logan Town Centre, a 715,819-square-foot asset, recently traded for $101.5 million, at a 6.8% capitalization rate, figures that are usually reserved for class A centers around major metro areas.
“While it’s located in Altoona, it draws easily from a 20-mile radius,” Jim Koury, a senior managing director at HFF, who brokered the deal for Yonkers-based seller AVR Realty, tells GlobeSt.com. “To me Altoona is a misnomer. It speaks more loudly to the stability of the area.”
Logan Town Centre, which was built in 2007, counts Giant Eagle Supermarket, Bed Bath & Beyond, Dick’s Sporting Goods and Kohl’s among its junior-anchor mix. The buyer, who Koury could only describe as a “private, high-net-worth individual” who is not part of a 1031 investment group, obviously sees potential returns of the center, which has a loan maturing in 2017 but is 98.4% leased.
“Their aren’t too many power centers in excess of 500,000 square feet that also have the area’s dominant grocer,” Koury, who is based in Boston, adds. “This kind of had it all, if you will.”
Logan Town Center is just off of Interstate 99 and close to the Altoona campus of Pennsylvania State University. It was completed in phases between 2006 and 2012.
The sale marks AVR’s retail real estate exit from Pennsylvania. It currently owns just over 20 retail centers in California, Georgia, Massachusetts, New York, Rhode Island and Texas. It also multifamily, office and hotel assets.