X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HARRISBURG, PA-Phoenix-based Feldman Equities and Philadelphia-based joint-venture partner Lubert-Adler bought the 840,000-sf Harrisburg East Mall from Prudential Insurance Co. of America. The price is undisclosed, but, on condition of anonymity, a source familiar with the transaction tells GlobeSt.com the JV paid $17.5 million.

Larry Feldman, CEO of the company that bears his name, tells GlobeSt.com the new owner will invest more than $40 million in capital expenditures and tenant upgrades at the property over the next two years.

Concurrent with the acquisition, Feldman inked leases for an aggregate 410,000 sf with two new major anchors and a long-term renewal with Hecht’s for 180,000 sf. Springfield, MO-based Bass Pro Shops will convert space currently occupied by Lord & Taylor into a 225,000-sf fishing, hunting, camping and boating mecca. Bass Pro, which has gained “destination” status, attracts an estimated three million shoppers a year. The local unit will be the largest Bass Pro store other than its flagship location in Springfield.

Meanwhile, Boscov’s will renovate and expand the mall’s former JCPenney store into a 185,000-sf unit, its third in the metro area. In addition, Hecht’s inks a long-term renewal for approximately 180,000 sf. Other current tenants are Gap, Victoria’s Secret, Disney Store, Limited, American Eagle, Waldenbooks, CVS, Footlocker and Kay Jewelers.

The property, which was built in 1969 and renovated in the 1990s, is currently 86% occupied. It has space for significant mall and out-parcel development, including an arcade, entertainment theme restaurant or multiplex theater. Feldman says it “holds tremendous upside potential through the implementation of an aggressive leasing campaign to attract new tenancy and to retain its many existing quality tenants.” It is “exactly the type of property Feldman Equities is currently targeting under our focused acquisition plan,” he adds.

Feldman tells GlobeSt.com he expects pedestrian traffic to increase “ten-fold,” based on the draw of Bass Pro and Boscov’s and the planned renovation. “Because rental rates are based on store volume, we have not yet set rental rates,” he says. Feldman is the former chairman and CEO of New York-based Tower Realty Trust. Feldman Equities recently acquired Foothills Mall in Tucson, AZ and invested more than $18 million in renovation and upgrades.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.