CONSHOHOCKEN, PA—A partnership of Vastgood Properties, LLC of Port Washington, NY and RW Partners, Inc. of Conshohocken, PA has acquired a portfolio of seven Giant supermarket-anchored shopping centers in mid-to-eastern Pennsylvania for $127 million.
The deal was announced by New York City-based Meridian Capital Group, which arranged $97 million in acquisition financing for the new ownership. The 10-year CMBS loan features a rate of 3.87% and five years of interest-only payments with the balance on a 30-year amortization schedule. The transaction was negotiated by Meridian VPs Bryan Kallenberg and Meyer Ovadia, who are both based in the company’s New York City headquarters.
The portfolio consists of Giant supermarket-anchored shopping centers spanning a total of 548,482 square feet. The properties include Aston Center in Aston, PA; AYR Town Center in McConnellsburg, PA; Creekside Marketplace in Hellertown, PA; Parkway Plaza in Mechanicsburg, PA; Scott Town Center in Bloomsburg, PA; Spring Meadow Shopping Center in Wyomismesing, PA and Stonehedge Square in Carlisle, PA.
The Giant stores represent approximately 75% of the portfolio’s total gross leasable area and generate 80% of the portfolio’s revenue. Giant Food Stores, LLC is a wholly-owned affiliate of Ahold Delhaize N.V., the fourth largest retail grocery company in the world. All the properties feature long-term leases for the Giant stores and renewal options extending decades.
The properties have been managed for the past seven years and will continue to be managed by Vastgood Properties.