Suburban Philadelphia open-air retail center sells for $162M

PHILADELPHIA, Feb. 18, 2022 – JLL Capital Markets announced today that it has closed the $162 million sale of Providence Town Center, a 759,945-square-foot, open-air destination retail center anchored by Wegman’s in the affluent Philadelphia suburb of Collegeville, Pennsylvania.

JLL marketed the property on behalf of the seller, Brandolini Companies. Bethesda, Maryland-based Finmarc Management, Inc. and New York City-based KPR Centers acquired the asset. Providence Town Center represents the second largest open-air retail transaction by square footage in the Philadelphia MSA, behind East Gate Square, which traded in 2015.

Anchored by Wegmans, Providence Town Center is at 10 Town Center and is the No. 4 most-visited retail center in Pennsylvania. Wegman’s, which is recognized as the market dominant grocer in the region, has operated at the property since it was developed between 2008 and 2009. Other notable tenants of the 92-percent-leased center include Best Buy, Old Navy, Dick’s Sporting Goods, HomeGoods, Michaels, LA Fitness and Movie Tavern.

The JLL Retail Capital Markets team representing the seller was led by Senior Managing Directors James Galbally and Christopher Munley and Senior Director Colin Behr, as well as Senior Managing Director and Retail Platform Co-Head Chris Angelone.

“We had incredible interest from a diverse group of private, institutional and REIT investors. as Providence Town Center is recognized as one of the most high-profile and dominant shopping centers in the Northeast and Mid-Atlantic,” Galbally said.

“The appetite for larger, $100+ million retail deals throughout the country is more robust than pre-pandemic levels, which highlights the conviction and fundamentals behind the retail sector,” Behr added.

“Throughout the process, it became evident from the abundance of new, unique capital showing up to participate that demand for grocery-anchored product and large-format shopping centers in general is steadily on the rise,” Munley said. “With the current lack of supply of like-kind inventory available to market, we anticipate this product to continue to price at a premium.”

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 sales and 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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