BENSALEM, PA-Lakewood, NJ-based Paramount Realty adds the 300,000-sf Home Depot Plaza across from Franklin Mills Mall to its growing portfolio. According to Maurice Zekaria, Paramount's director of acquisitions, it paid approximately $40 million, or $133.33 per sf for the strip center.
The seller is a joint venture between New Hyde Park, NY-based Kimco Realty and DRA Advisors, which is headquartered in New York City. A team from the local office of Cushman & Wakefield represented the seller, and Paramount spoke for itself.
The center, located at the intersection of Bristol Pike and Woodhaven Road, is approximately 15 minutes from Center City Philadelphia. It was built in 1971 and renovated in 1992. Zekaria says it has "strong anchor tenant sales, below-market rents, lease-up opportunities, an exceptional location and additional development potential." Paramount plans to invest approximately $2 million in upgrades to the exterior, adding a new facade, columns and signage and totally renovating a freestanding, 22,790-sf office building on the property.
The property, including the office building, which is occupied primarily by medical tenants, is 90% leased, Morris D. Levy, vice president of Paramount, tells GlobeSt.com. Anchors are an Acme Supermarket, Babies R' Us and an AMC theater in addition to Home Depot. The new owner is adding a 4,000-sf bank pad. "Negotiations are under way with the tenant," Levy says, "and the bank will build the branch and occupy it under a ground lease."
Conshohocken-based Metro Commercial has been named exclusive leasing agent. Levy says the average rental rate is $14 per sf, triple-net. Paramount recently acquired Festival at Hamilton in Mays Landing, NJ, and Ganttown Plaza in Turnersville, NJ.
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