Tom Maher, a principal of Eastern Development, says that the appeal of the center to his firm is the center's location "in the heart of West Springfield's retail market." He adds that its existing strong tenancy, including Stop and Shop as its major tenant, enables the center to "offer consumers and the community a broad array of shopping choices." He emphasizes that the acquisition fits into his company's strategic growth plan for grocery-anchored centers in New England. Other tenants in the center include Old Navy, Fashion Bug and Country Buffet. In addition Kentucky Fried Chicken and Chi Chi's Restaurant have freestanding sites at the location.
Financing was provided by Fleet National Bank and Fleet Real Estate Investments. Susan Wolkoff, executive vice president of Fleet's Real Estate Finance Group, stresses the value-added opportunity in this deal.
While activity has slowed down in the office market, retail centers remain strong products in this area in the real estate market and within retail, supermarket-anchored centers have become the more appealing investment. According to local industry experts it is the long term leases and customer loyalty that makes these shopping centers so attractive. In fact, supermarket-anchored centers have become more valuable than non-supermarket anchored centers.
Eastern Development specializes in retail and office properties and this acquisition represents the 80th property in its portfolio. The company is also involved in developing 33 Arch St., a 33-story office tower in the heart of Boston.
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