PHILADELPHIA-With the inking of a lease with PetSmart for 20,500 sf, the redevelopment of 375,000-sf Boulevard Plaza in North Philly is complete. This follows a lease with Target for a 145,000-sf new Target Greatland store, which signaled the revival of the 15-year-old center that had suffered a precipitous decline following two consecutive losses of an anchor due to bankruptcy.

Caldor, an initial anchor, went bust in 1999. Ames Department Stores filled the vacancy until it succumbed to bankruptcy two years later. The 12-lane Roosevelt Blvd. is dotted with shopping centers and big box retailers, which posed significant competition to the ailing center, which, following Ames’ exit in 2001, lost another 12 tenants.

New York-based Lavipour & Co., which specializes in repositioning under-performing shopping centers along the mid-Atlantic, acquired the property. Its potential lay in its “large tract of land at a strategic intersection surrounded by a dense population in an area where good development sites are scarce,” says David Lavipour, president.

Lavipour hired Mt. Laurel, NJ-based Metro Commercial Real Estate to market the property. Stephen Niggeman and Thomas Londres, Metro SVPs and principals, negotiated the Target lease, which is the giant chain’s second unit in Philadelphia County.

Making way for this prime tenant, however, called for significant demolition, construction and the relocation of three existing prime tenants. During construction, tenants occupying 178,000 sf had to continue doing business. A Metro affiliate, Metro Commercial Construction Services, headed by Philip Yurkow, coordinated the required permits and the site work.

During the final phase of the redevelopment, Metro’s Londres negotiated the PetSmart lease. It called for a freestanding unit within the redeveloped area and zipped up the remaining vacancy. Rental rates for the leases are undisclosed. According to the local office of Marcus & Millichap, although asking rates in this area average $17.70 per sf, the average effective rate is approximately $16 per sf. National tenants, such as Target and PetSmart, however, generally lease at below the average.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

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 © 2024 ALM Global, LLC. All Rights Reserved.