Whole Foods Market-anchored retail in Philadelphia MSA trades to new owner
JLL Capital Markets closed the sale of the 65,155-square-foot, single-tenant Whole Foods Market at Plymouth Meeting
PHILADELPHIA, Feb. 13, 2023 – JLL Capital Markets announced today that it has closed the sale of the 65,155-square-foot, single-tenant Whole Foods Market at Plymouth Meeting Mall located within the Philadelphia MSA.
JLL worked on behalf of the seller, Pennsylvania REIT, to an institutional buyer.
Whole Foods Market at Plymouth Meeting Mall features a Blue Route taco truck and rooftop patio, Cold Point Pub, a private event / meeting space, a parking garage featuring a cart escalator with direct access to Whole Foods Market and interior and exterior dining areas. The grocer executed a 20-year lease in 2009 and now has eight years of remaining lease term with 5, five-year options in place. The lease also features a corporate guaranty from Whole Foods Market, Inc. This location has served nearly one million customer visits over the last 12 months.
Situated at 500 W Germantown Pike, the property is conveniently located minutes away from the confluence of Interstates 276 and 476, the major interstates throughout the greater Philadelphia area. Together, the three arteries boast nearly 300,000 vehicles per day, making this one of the most significant intersections in the state. Consumer traffic is further bolstered by the adjacent Plymouth Meeting Mall, featuring LEGOLAND Discovery Center, Plymouth AMC Theater and Dave & Buster’s.
The JLL Retail Capital Markets Investment Advisory team representing the seller was led by Senior Managing Directors Jim Galbally and Chris Munley and Managing Director Colin Behr.
“Despite the evolving capital markets environment, there continues to be strong investor demand for free standing grocers and grocery-anchored shopping centers. The Whole Foods in Plymouth Meeting was extremely sought after by investors due to the property’s location in one of the premier regional retail markets in the Philadelphia area, as well as Whole Foods’ investment grade credit profile and strong sales history,” said Galbally.
“With offers from institutions, public REITs and high net worth family offices, this was an extremely competitive process. Ultimately, our seller (PREIT) and buyer (Agree) worked tirelessly in a challenging environment to get this across the finish line. We appreciate the efforts of both seller and buyer,” said Behr.
“With retail fundamentals currently thriving and an exceptionally low level of available product on market, our team has experienced pricing levels for grocery retail at or near valuations from this time last year,” said Munley.
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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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 $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of September 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.