Mark Taylor and Dean Zang of the Philadelphia office of Marcus & Millichap listed the property exclusively on behalf of Wargo and also secured the buyer. "We produced eight bidders in the first five days of marketing, with two bidding at full price," says Taylor. "Six of the bidders were out of state and were more aggressive than some of the local bidders."
In an M&M retail research report for the greater Philadelphia area, Jeffrey Algatt, M&M's regional manager, says multi-tenant sales show appreciation this year. The median price for the overall region was $98 per sf in 2003, according to M&M data. Algatt also predicted that investors from outside the area are buying "in an increasing proportion … escalating their share."
According to Taylor, exposure to a national platform creates a bidding environment that can result in more aggressive pricing than can be generated locally and regionally. The sale price of Forks Town, he says, represents a 7.5% cap rate based on the center's net-operating income.
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