Post Brothers affiliate responds to rising demand for high street retail
In a strategic response to the rising demand for high street retail, PH Retail — an affiliate of leading-edge real estate company Post Brothers — today announced that it has acquired acquired a controlling interest in two properties in Center City Philadelphia, with a total project cost in excess of $50 million. Located on two of Philadelphia’s most desirable retail thoroughfares, the properties — 1501-05 Walnut Street and 1520-22 Chestnut Street — add 70,000 square feet of prime commercial space to PH Retail’s portfolio, which currently consists of assets valued in excess of $100 million.
“In recent years, we’ve witnessed an increasing number of retailers gravitate toward opening up locations on high streets,” stated Randy Hope, co-founder and managing director of PH Retail. “With Millennials and Baby Boomers moving into urban neighborhoods at an unprecedented pace, retailers are migrating to heavily trafficked city streets, where restaurants, cultural attractions and entertainment venues attract both affluent residents and tourists.”
As an opportunistic investor, PH Retail identifies properties that possess untapped potential, and optimizes their performance through capital improvements and innovative leasing strategies. PH Retail delivers on its vision with a meticulous and keen attention to even the smallest details, from responsibly sourced building materials to efficiently designed buildings, which enhance the customer experience.
“These blocks of Walnut and Chestnut have some of the fastest-rising retail rents in the country, and we believe those numbers will continue to climb as demand for space outpaces supply,” Hope said. “As an increasing number of retailers eschew malls in favor of walkable, downtown locales, we are well positioned to acquire properties in Center City that are underutilized or not properly managed.”
Situated on two of Philadelphia’s most recognized streets, both 1501-1505 Walnut Street and 1520-22 Chestnut Street provide unparalleled access to the affluent residential base of Rittenhouse Square, the acclaimed Avenue of the Arts on South Broad Street, Philadelphia’s flourishing tourism base, and several employee-dense office corridors.
Totaling 30,000 square feet of retail/restaurant space, 1501-1505 Walnut Street is home to AT&T Mobility’s flagship location and Club Monaco, and currently has one availability of 2,848 square feet.
Totaling more than 40,000 square feet, 1520-22 Chestnut Street features 27,000 square feet of above-grade space, and another 13,500 square feet below grade. Dollar Tree vacated the property earlier this year, creating an availability that will be sought after by the large number of retailers that are intent on establishing a foothold in Philadelphia’s downtown.
The seller of the properties was represented by James Galbally of JLL.
“This part of Center City is truly a live-work-play urban core, and high-end retailers are clamoring to gain access,” said Hope, who noted that, over the past five years, Philadelphia has welcomed retailers such as Barney’s Co-Op, Intermix, Lululemon, Apple, Theory, Madewell, Michael Kors, Uniqlo, H&M and Nordstrom Rack. “While Walnut Street has long been a retail hotspot, the demand for space in this section of the city has led to high-quality retail options along many of the neighboring corridors, with the most notable being Chestnut Street.”
About PH Retail
Founded in 2015, PH Retail is a vertically integrated real estate company that invests in retail properties for which value can be enhanced through capital improvements and innovative leasing strategies. Based in Philadelphia, Pa., PH Retail actively invests in key metropolitan markets throughout the Northeast. An affiliate of leading multifamily owner/developer Post Brothers, PH Retail owns and operates a portfolio valued in excess of $100 million.
