Grocery-anchored retail center in Pennsylvania sells
JLL Capital Markets arranged the sale of the 229,724-square-foot Hershey Square in Hummelstown, Dauphin County, Pennsylvania
Philadelphia, March 6, 2023 – JLL Capital Markets announced today that it has closed the sale of Hershey Square, a 229,724-square-foot, grocery-anchored retail center situated in Hummelstown, Dauphin County, Pennsylvania.
JLL represented the seller, Heidenberg Properties.
Built in 1994, the 98-percent-occupied Hershey Square is anchored by Weis, Big Lots and T.J. Maxx. Additional notable tenants include Planet Fitness, Five Below, Chipotle, Goodyear, AT&T, Verizon, Panera, Five Guys and VisionWorks. 55% of the property’s income derived from credit tenancy and 81% of gross income is from its national tenant lineup. The Weighted Remaining Lease Term is 7.2 years.
Situated at 1130-1198 Mae St., the property is located along the highly trafficked Route 422 corridor, providing great visibility from approximately 50,000 vehicles per day and frontage along a major retail thoroughfare in the York County submarket. The signalized intersection along Route 39 provides ease of access to the center. Additionally, the property is three miles from Hershey Park, which receives approximately 3,000,000 visits per year.
The JLL Retail Capital Markets Investment Sales and Advisory team that represented the seller was led by Senior Managing Director Christopher Munley and Jim Galbally and Managing Director Colin Behr.
“This is quintessential Heidenberg execution. They flawlessly executed on their value-add plan, and during their hold period, they successfully backfilled a vacant K-Mart box with best-in-class tenants, including Planet Fitness, TJMaxx, Big Lots and Five Below. Additionally, they were able to attract Chipotle, Starbucks and Aspen Dental on pads, further driving the value of the center,” said Behr.
“Hershey Square is indicative of what is in demand and pricing to a premium from private and public investors alike. High-quality, grocery-anchored product with growth prospective is and will continue to be the most sought-after retail investment target,” stated Munley.
“The grocery-anchored segment within the retail asset class remains incredibly active. The sale of Hershey Square represents the 20th grocery-anchored shopping center that we have sold in the last six months,” said Galbally.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $20.9 billion, operations in over 80 countries and a global workforce of more than 103,000 as of December 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Heidenberg Properties
Heidenberg Properties is a full-service real estate development company focused on the acquisition and development of open-air shopping centers, net leased properties, and secured note purchases in the Easter United States. The group is actively seeking new acquisitions and development opportunities. To learn more, visit www.heidenbergproperties.com.