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PHILADELPHIA-An affiliate of New York-based Benbrooke Realty Investment Co. acquired 223,562-sf Franklin Marketplace from Crown Life Insurance, which is based in Canada. Michael Oestreich, a Benbrooke principal, and the negotiators for the seller all decline to tell GlobeSt.com the price, saying they are bound by a confidentiality agreement with the seller.

"The price was a significant discount in relation to the replacement cost," Oestreich says. The center neighbors Franklin Mills, a 1.8-million-sf outlet mall operated by Mills Corp.

Referring to its proximity to Franklin Mills, Oestreich adds, "we think the location is viable and has the ingredients we like." He says the acquisition is in keeping with his company's core focus of acquiring value-added properties and tells GlobeSt.com it "offers significant potential through lease-up of vacant space." It is currently 38% occupied, he adds and points to its three-mile trade area, which has a population in excess of 100,000 with an average household income of $62,500.

Trupert Ortleib and John Fasciano, principals of Conshohocken-based Fameco Real Estate, were recently contracted by the seller to provide leasing and property management at the center and then asked to facilitate the sale. Fasciano says the property was once a home and decorating center and indicated that it went down hill when Heckinger's closed several years ago. Under Fameco's management, leases were inked with Comp USA, Pier 1, Dollar Tree and Citizen's Bank.

George Ackerman, a Benbrooke principal, will spearhead the redevelopment. Oestreich says a third-party broker, yet to be named, will supplement the in-house leasing efforts. Rick Lechtman of Ackerman-Ziff Real Estate Group secured the debt financing and Fameco brokered the sale. According to Rich Lubkin of Benbrooke, the property was sourced, analyzed, financed and closed within 50 days.

Benbrooke acquires, renovates, develops and manages neighborhood and community shopping centers along the Eastern seaboard and in Texas. Since its inception in 1992 it has acquired and redeveloped more than 2.5 million sf of properties, and its current portfolio exceeds 1.5 million sf.

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Buyer Plans Redevelopment of Franklin Marketplace

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