CBRE Group, Inc. (CBRE) is pleased to announce that it has brokered the sale of The Shops at Valley Square, a 292,888 square-foot mixed-use lifestyle center located in Warrington, Bucks County, Pennsylvania. Built in 2007, the shopping plaza features 203,953 square feet of first-floor lifestyle retail and 88,935 square feet of second-floor professional office space. Brad Nathanson, Chris Decoufle, and Kevin Reavey on behalf of CBRE represented the seller, iStar Financial, Inc. The buyer was a joint venture between affiliates of Poag Shopping Centers and real estate funds managed by Ares Management. John Farrell of CBRE’s Debt and Structured Finance represented the buyer in sourcing the acquisition financing.
The Shops at Valley Square is a signature transaction within the suburbs of Philadelphia given its rare large size among lifestyle centers within the MSA. With the dominant nature of the enclosed mall sector within the markets of King of Prussia, Cherry Hill and Willow Grove, most of the lifestyle centers that had been constructed over the past 15 years have been smaller in nature, raising the prominence of The Shops at Valley Square among the lifestyle tenants.
The Shops at Valley Square is part of a larger master planned development that is anchored by Wegmans Supermarket, an additional 167,500 square-foot Power Center, and approximately 200 townhouses. Wegmans Supermarket greatly expands the property’s drawing power and creates the ultimate synergy in attracting dining, beauty and fashion tenants and shoppers to the area. With one of the top lifestyle operators in the country now owning and operating the asset, they will bring abundant national tenant relationships to improve the physical occupancy as well as the overall tenant quality and synergy at the property.
Josh Poag, president and chief executive officer of Poag Shopping Centers, says “This community favorite is a beautifully designed gathering space with excellent stores and restaurants. We look forward to adding special touches and events that will make for an even better experience for families and individuals. There has been tremendous population growth in this area of the country during the past ten years, and we are pleased to expand our presence here and throughout the Northeast region.”
Steve Wolf, Partner in the Ares Real Estate Group, says: “We are excited to partner with Poag, a real estate manager with proven expertise and success in commercial and retail investments across the U.S., in order to improve this property and maintain its position as one of the premier retail centers in the region. The Shops at Valley Square is well located and known for offering an attractive mix of retail and dining alternatives. ”
Conveniently located at the prime intersection of Route 611 and Street Road in Warrington, the center is situated within one of Pennsylvania’s most affluent areas, Buck County, with average household incomes of $106,000 and average home values of $325,000. Retailers at the center include DSW, ULTA, Banana Republic, White House Black Market, and Loft. A sampling of restaurants includes P.F. Chang’s, Chipotle, Panera, The Melting Pot, and a local favorite, Carmel Kitchen & Wine Bar.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
About iStar Financial
iStar finances, invests in and develops real estate and real estate related projects as part of its fully-integrated investment platform. Building on over two decades of experience and more than $35 billion of transactions, iStar brings uncommon capabilities and new ways of thinking to commercial real estate and adapts its investment strategy to changing market conditions.
About The Poag Shopping Centers
Headquartered in Memphis, TN, Poag Shopping Centers and its predecessors are recognized as founders and leading developers of Lifestyle Centers. The Company's national portfolio currently consists of 16 Lifestyle Centers in various stages of development. New developments focus on sites with optimal demographics and the highest density of people, which inevitably attract residential properties, office buildings, or hotels with vertical or horizontal integration. Poag Shopping Centers partners with the best in class in these various disciplines in order to maintain the uniqueness and quality of its developments. It seeks quality acquisitions in order to fully utilize skills in leasing and development and to maximize values for partners. Poag Shopping Centers was founded in 2012, and combined with its predecessor company, Poag & McEwen Lifestyle Centers, LLC, it offers more than three decades of experience.
About Ares
Ares Management, L.P. is a publicly traded, leading global alternative asset manager with approximately $94 billion of assets under management as of March 31, 2016 and more than 15 offices in the United States, Europe and Asia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its three distinct but complementary investment groups in Credit, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole. For more information, visit http://www.aresmgmt.com.
