Prasavi Inc. has acquired Colonial Commons, a 410,432-square-foot procuring middle positioned at 5070 Jonestown Highway in Harrisburg, Pa. Cedar Realty Belief bought the asset for $66.5 million, public data present. Based on CommercialEdge knowledge, the property beforehand traded in 2011 for $46.1 million. Institutional Property Advisors, a subsidiary of Marcus & Millichap, negotiated on behalf of the vendor and procured the customer within the present deal.
Developed by Olympic Realty & Growth Corp., Colonial Commons got here on-line in 1989 and was fully renovated in 2014. The retail complicated was 98 p.c leased on the time of sale; tenants embody Dick’s Sporting Items, Passion Foyer, HomeGoods, Marshalls and Outdated Navy, amongst others, and a PetSmart retailer will open on location in 2023. AEM Property Group manages the property, whereas Bennett Williams is accountable for leasing.
The facility middle is on Harrisburg’s Japanese Shore, on the intersection of Jonestown Highway and Route 22, close to Interstates 81 and 83, which join New York Metropolis to the Washington, D.C.-Baltimore space. Some 300,000 individuals, with a mean annual family earnings of greater than $75,000, reside inside a 10-mile radius.
IPA Managing Director Brad Nathanson represented the vendor within the transaction.
Retail stays dependable
Regardless of an growing danger of financial downturn, the nation’s retail sector has held robust, partially as a result of client’s want to buy in-person following a time of widespread restrictions. Total, retail spending has continued to pattern upward, with energy facilities specifically recording a emptiness charge of 4.8 p.c within the second quarter of 2022, whereas your entire sector’s web absorption swings upwards at 9.6 million sq. toes, in line with a Cushman & Wakefield report. The market stays a comparatively recession-proof funding, even throughout a time of excessive inflation and rates of interest.
Acknowledging the sector’s efficiency, Nathanson mentioned in ready remarks there was large energy middle funding velocity given the retail sector’s resiliency by means of the pandemic and excessive demand for worth retailers, together with attire and furnishings, in speedy enlargement over the previous 12 to 18 months.
