X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WARMINSTER, PA-In two unrelated transactions, the 130,000-sf Warminster Plaza has been acquired for $12.4 million and the 80,000-sf Country Square Shopping Center in nearby Quakertown commanded $9.5 million. Rent rates at both properties are currently below market, and both centers provide room for expansion.

East Brunswick, NJ-based US Real Estate Acquisitions LLC reached above the list price to beat out more than 15 offers for Country Square, according to Brad Nathanson, a senior associate in the Philadelphia office of Marcus & Millichap. A majority of the offers came from buyers in New York, New Jersey and Maryland. Nathanson and Jordan Muchnick of the same office represented the seller, Bryn Mawr-based Saul Associates. Brent Waterman of Marcus &Millichap’s multihousing group represented the buyer.

Country Square is located at 20 S. West End Blvd. in Quakertown. It was built in 1974 and completely renovated in 2005-2006. It is 95% leased, and key tenants are Goodwill, Sears and Swan Pantry Grocery. “The rents are between $4 per sf and $5 per sf under market,” Nathanson says, adding that the market rate is between $20 per sf and $25 per sf. The new owner plans an additional strip or pad site in front of the 14-acre parcel.

Philadelphia-based Walnut Street Capital, headed by Joseph Grasso, acquired Warminster Plaza, which is located at the intersection of York and Street roads here. It is also on 14 acres and allows for expansion and additional pad sites. Nathanson represented Walnut and the seller, Warminster Group LP, which is based in Conshohocken and is in the process of disposing of its real estate, he says.

This center was built in 1963 and recently lost a Rite Aid pharmacy and Staples, which left occupancy at between 50% and 60%. The new owner will invest approximately $5 million to totally reposition the property as Grasso has with others in Bucks County, “turning it into a Main-Street, lifestyle-type center,” Nathanson says.

The current rents are between $15 per sf and $19 per sf, and Nathanson says market rate in this area of the Main Line is from $23 per sf to $28 per sf. “The buyer is in negotiations with a national office supply retailer, an upscale furniture store, a coffee shop and a bank,” he says. In addition, he tells GlobeSt.com that as the property went to market and prior to the close, a 60,000-sf adjacent former Pathmark unit was sold and will be operated by Waterloo Gardens, an upscale patio retailer. That complements Walnut’s plans perfectly,” he points out.

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.