Marcus & Millichap Brokers Three Retail Deals In One Day

PHILADELPHIA, PA—Marcus & Millichap sold three retail properties in the Philadelphia/South Jersey/Lehigh Valley markets in a single day.

All three deals were closed by the TZD Group, part of Marcus & Millichap's National Retail Group, led by three senior agents in the firm: Mark Taylor, Dean Zang, and Derrick Dougherty. The properties, an Applebee's in Williamstown, NJ; a KinderCare in Allentown, PA; and a Walgreens in Warminster, PA, were handled internally with all parties procured by Marcus & Millichap.

Derrick Dougherty, senior member of the TZD Group in the firm's Philadelphia office, had the exclusive listing to market both the Williamstown Applebee's and the Allentown KinderCare. The Applebee's is a new location, opening in August. The franchise location, which is an outparcel to a Walmart, is part of a 20 year triple net ground lease. The buyer, a limited liability company, was secured and represented by Derrick Dougherty, Mark Taylor, Dean Zang, Ridge MacLaren, Clarke Talone and Andrew Townsend, investment specialists in Marcus & Millichap's Philadelphia and Washington, D.C. offices. Brenton Baskin, Marcus & Millichap's regional manager, also assisted in closing this transaction. The franchisee and tenant, Apple American Group, owns and operates approximately 450 Applebee's Neighborhood Grill and Bar restaurants in the United States, making it one of the two largest franchisees of any concept in the United States. The Applebee's is located at 1840 S. Black Horse Pike in Williamstown, NJ.

Derrick Dougherty, with assistance from Mark Taylor, Dean Zang, and James Medefind, also brokered the deal for a 7,516-square-foot KinderCare in Allentown, PA. The asset, previously owned by a Florida-based investor looking to move his portfolio south, sold for $1.17 million. The buyer, a limited liability company local to the area, was also secured and represented by the TZD Group. Despite the difficulty that hit day care centers during the recession, strong demographics in the Allentown area has kept this KinderCare profitable, Marcus & Millichap says. A continuously high occupancy rate and an Average Household Income above $103k has kept the tenant in the same location for 15 years. The Corporately Guaranteed KinderCare also recently renewed its five year lease and routinely has above 90 percent occupancy, currently with 110 children enrolled out of a 116 capacity. The buyer, savvy to the local real estate market and the value of a strong tenant, was motivated by these numbers. KinderCare is located at 7575 Penn Drive in Allentown, PA.

The third property closed was a 13,905-square-foot net-leased Walgreens at 10 York Road in Warminster, PA. The asset sold for $7.55 million. Mark Taylor and Dean Zang had the exclusive listing to market the property on behalf of a merchant developer who has built more than 100 Walgreens across the East Coast. The buyer, a limited liability company that owns and builds retail, multifamily, and industrial properties, was secured and represented by Ridge MacLaren, Clarke Talone and Andrew Townsend, members of Marcus & Millichap's National Multifamily Housing Group in Philadelphia. Built in 2000, the Walgreens has a 30 year lease.