Philly Retail Space

Philly Retail SpaceWolf Commercial Real Estate is a premier Philadelphia commercial real estate broker that represents Philly retail space for lease and sale.

We are experts in the Philadelphia retail space market, with a team of seasoned and knowledgeable real estate advisors ready to help you achieve your real estate goals. At Wolf Commercial Real Estate, we go well beyond simply handling property transactions. As an unparalleled Philadelphia commercial real estate broker, we are a strategic partner whose number-one priority is our client’s long-term growth and success in the Philadelphia retail space market.

Retail businesses looking to buy or lease retail space in Philly can be assured that the professionals at our Philadelphia commercial real estate brokerage firm have the expertise to help you find the Philly retail space that best suits your needs. At Wolf Commercial Real Estate, we make certain that the sale or lease terms for your new Philadelphia retail space work to advance your commercial real estate goals. We’re the Philadelphia commercial real estate broker that is with you from the beginning of the transaction to the end, making the transition to your new retail space in Philly smooth and seamless.

Do You Own Philly Retail Space?

Retail property owners looking to sell or lease retail space in Philadelphia will appreciate the defined marketing strategy that the team at our Philadelphia commercial real estate brokerage firm creates and customizes for each property and sub-market. This process works to effectively and efficiently match buyers and tenants with retail space in Philly.

Retail space in Philadelphia is aggressively priced, and market trends show that the retail business in the region is poised for a massive rebound. For more information, please contact the team at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate brokerage firm.

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Boyds ‘Seriously Looking’ for Permanent Suburban Store as Ardmore Pop-Up Proves to be Bright Spot for Retailer

 

For retailers such as Boyds, a clothing and accessory store that caters to well-heeled Philadelphians, the pandemic has been challenging and this past holiday shopping season even more vital to its future.

The retailer opened a pop-up store at Ardmore’s Suburban Square in October to test the suburban market for the first time in its more than 80-year history while maintaining its flagship on Chestnut Street in Center City.

The results on how Boyds fared during this past holiday season are bifurcated and reflect how the pandemic is affecting where people shop.

“Sales for the holiday season were very, very mediocre but a little better than I anticipated,” said Kent Gushner, who oversees the family-owned business, about Boyds’ Center City store.

Sales were down by 35%, which is a lot, but Gushner thought it would be worse.

“The week between Christmas and New Year’s is an important week for us,” he said. “It wasn’t great but a little better than expected.”

Boyds opened up the temporary Suburban Square location in October. Gushner was motivated to test it out after the civil unrest, vandalism and looting over the summer in Philadelphia left him frustrated and angry.

“That, by far, has been a bright spot,” he said. “It’s worked out to be a very good decision on our part.”

In Suburban Square, Boyds has been catering to existing customers who live in the suburbs and aren’t coming into the city for work or to shop. The store is also capturing new customers who never venture into Philadelphia and, but for the pop up, wouldn’t have been introduced to the retailer. “It’s been great,” Gushner said.

As a result, Boyds has extended its lease at Suburban Square until the end of June and has started conversations about finding a permanent suburban location at Suburban Square or another Main Line location. “At this point, we’re not close to signing on the dotted line but seriously looking,” Gushner said.

The lackluster sales in Center City can be mostly attributed to a lack of foot traffic generated by office workers who typically come into Philadelphia for work during the week and to those who come in for shopping and dining on the weekends. That has affected retailers across the city.

“We have to figure out how to get the vibrancy back in the city,” Gushner said. “We’re trying to stay positive and stay realistic on what life and business in the city will be like when this passes and what the new normal will look like. I think there will be some permanent changes that will happen in the city that will affect us.”

With that, Gushner also sees opportunity not only in the suburbs but with what will undoubtedly be less competition as retailers continue to close.

In the meantime, Gushner and his team are working out new issues that crop up from running more than one location. “We’re learning on the fly,” he said.

Boyds has operated one store for more than eight decades and that was part of the retailer’s core business philosophy to stay focused on a single location. But, as with so many other things, Covid shifted that thinking and forced a change that wasn’t anticipated.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia retail space for sale or lease in Philadelphia or about any other Philadelphia properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Sneak peek: Wawa Opening First Standalone Drive-thru Location in Bucks County on Friday

Wawa is taking to Bucks County on Friday to open the first standalone drive-thru-only convenience store in its footprint that includes more than 900 locations.

The 1,800-square-foot store at 549 W. Trenton Ave. in Morrisville will boast a single-lane drive-thru that has a capacity for 12 cars at a time. The location will operate daily from 6 a.m. to 10 p.m., serving breakfast, lunch and dinner. It will employ about 30 people.

Menus, available on digital boards as well as on mobile devices via scannable QR codes, include bundle deals like a Breakfast Sizzli and coffee for $4.29; a $7.99 lunch combo consisting of a shorti hoagie, choice of side such as mac and cheese or soup, and a large soft drink; and build-your-own dinner combos of pasta with a protein and vegetables or a bowl ranging from $6.99 to $8.99. The popular chain’s newest menu items, like burgers and fries, will also be available (burgers hit the menu daily at 4 p.m.).

The Falls Township location has been in the works since March, said Terri Micklin, director of construction at Wawa. While drive-thrus had been a strategy on the Media company’s radar before Covid-19 hit, the pandemic “acted as a catalyst to accelerate that going forward.” The Trenton Avenue property had already been zoned and approved for a quick-service restaurant with a drive-thru, so Wawa was able to open the store quickly.

 

The Morrisville spot was pinpointed for the brand’s first drive-thru-exclusive store because of its ability to hit the market quickly coupled with a strong, established customer base in the Falls Township area, Micklin noted.

A Wawa store typically ranges from about 5,800 to 6,000 square feet. The new location, which Micklin added sits on about three-quarters of an acre of developable land, clocks in at less than half of that traditional size. Buildout costs ran about $2 million, similarly less than 50% of the costs of a standard shop.

“It allows us to get greater density and put these in different places and could create a lot of opportunities for our growth strategies going forward,” Micklin said. More businesses are looking at this type of property as a result of Covid-19, she added, noting the retail industry has “seen a shift where customers are looking for more contactless approaches” during the pandemic.

Wawa opened its first location with a drive-thru on Dec. 18 at 570 Rancocas Road in Westampton, New Jersey. Over the next 12 to 18 months, the chain is planning to add between five and 10 drive-thru-specific locations throughout its footprint, which encompasses Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Florida and Washington, D.C.

Whether those new potential locations will be standalone drive-thrus or new shops outfitted with a drive-thru component is still being determined, and will that decision will be informed as the chain uses the Westampton and Falls Township locations to get a pulse on how the format performs, Micklin noted. Since the Westampton store opened, the location has continued to update its menu in response to customer feedback. Some of the most popular items ordered at the drive-thru include burgers, fries and specialty beverages.

Aside from the forthcoming new drive-thru stores, Wawa is planning to add about 60 new locations throughout its territory in 2021, Micklin said. The company is leaning into adopting drive-thrus in an effort to increase convenience and accessibility in response to evolving customer demands, she added.

In an effort to similarly achieve that goal, the chain quickly expanded delivery and curbside into all of its stores by the end of 2020, said Alex Costabile, vice president of strategy. There are some exceptions, such as some Philadelphia locations that don’t have a parking lot, making it difficult to orchestrate curbside pickup.

When the pandemic hit, curbside pickup was primarily in a pilot program phase and delivery was available at roughly 25% of locations, Costabile added. A few months into Covid-19, delivery demand tripled and Wawa expanded its third-party delivery partnerships throughout the year to include DoorDash, UberEats, Postmates and Grubhub.

Delivery revenue increased more than 700% year-over-year from 2019 to 2020, Costabile said. Meanwhile, over 10% of all mobile app orders, which allow customers to order and pay ahead of time, are now for curbside pickup.

“One of the key things we want to be is available to our customers in any way that they want,” Costabile noted.

*Article courtesy of Philadelphia Business Journal

For more information about Bucks County retail space for sale or lease or about any other Bucks County properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Bucks County commercial real estate broker that provides a full range of Bucks County commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Bucks County commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Bucks County commercial properties for lease or sale through our Bucks County commercial real estate brokerage firm.

Giant to anchor $24M redevelopment of former Sears in Northeast Philadelphia

The Giant Co. will locate one of its grocery stores in a portion of a vacant Sears in Northeast Philadelphia that will undergo a $24 million redevelopment.

Giant will occupy about 60,000 square feet of the three-story, 237,151-square-foot property at Great Northeast Plaza at the intersection of Bustleton and Cottman avenues. It is one of several tenants that have leased space at the former department store, which closed in April 2018 and is now being transformed into a retail complex.

Ashley Flower, spokeswoman for Giant, confirmed the grocer will have a new store at the center but declined to provide additional details. Giant currently operates a store on Grant Avenue that is about three miles away from Great Northeast Plaza.

The redevelopment project is essentially leased up with a list of tenants that underscores which retailers are willing to strike deals during a pandemic as they look forward, banking on a brighter future. In the case of Great Northeast Plaza, a grocery and furniture store — Ashley Furniture is taking 52,000 square feet — will serve as anchors to the vacant Sears space. Grocers have become essential retailers during the coronavirus and, as more people are buying and sheltering in their homes, furniture and other durable goods have been in high demand.

Other tenants in the lineup include: Planet Fitness with 23,000 square feet, Hand and Stone Massage and Facial Spa with 2,800 square feet and Hairbuzz with 22,000 square feet. This is in addition to Starbucks and Jollibee, two retailers that will occupy newly built structures on outparcels. TD Bank and Holy Redeemer are existing tenants.

Late last fall, Abrams Realty and Development and Bock Development paid $28.75 million for the former Sears with a plan to redevelop it. At the time, the project was 98% pre-leased though details of the new tenants were limited. That it leased up so quickly, even during the pandemic, didn’t surprise the developer.

“That’s how strong the Cottman Avenue Corridor is and is actually getting stronger,” Abrams said. “The corridor is going through a renaissance of sorts and our project is part of it. We could have leased a lot more space if we had it, especially outparcels.”

Most of the redevelopment is expected to be completed by November.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia retail space for sale or lease in Philadelphia or about any other Philadelphia properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

 

 

PREIT to Relinquish Primary Control of Fashion District Philadelphia Under Bankruptcy Agreement

 

Pennsylvania Real Estate Investment Trust will relinquish much of its involvement in Fashion District Philadelphia beginning Jan. 1, leaving its partner in the project, Macerich Cos., to control the operations and make decisions involving the Philadelphia retail center, according to Securities and Exchange Commission documents filed by PREIT.

The arrangement arose as part of PREIT amending its loans and credit agreements through a Chapter 11 bankruptcy from which it exited last week and detailed in SEC documents.

As part of the new agreements, a $100 million payment was made and funded by Macerich on a $301 million loan backed by Fashion District Philadelphia. That payment reduced the outstanding principal on a Wells Fargo loan involving Fashion District to $201 million, according to SEC documents. The loan agreement was also modified to mature Jan. 22, 2023, with the potential of a one-year extension.

“In connection with the execution of the [Fashion District Philadelphia] loan agreement, the governing structure of PM Gallery LP was modified such that, beginning January 1, 2021, Macerich will substantially control the entity’s operations and, subject to limited exceptions, control major decisions,” PREIT said in SEC documents.

Santa Monica, California-based Macerich (NYSE: MAC) will take a lead role in all leasing, management, marketing, specialty leasing, legal and accounting efforts, according to PREIT. While the Macerich team will be leading the efforts, PREIT said it will continue to be present in decision-making and overall strategy for the property on an operating level as a 50/50 partner.

“We are appreciative of our partners at Macerich who have increased their investment in Fashion District Philadelphia, which has not only allowed us to finalize our credit agreement but also ensures that we will continue to operate Fashion District Philadelphia as 50/50 partners, with Macerich taking a lead role in day-to-day operations,” said Joseph Coradino, PREIT CEO, in a statement.

All employees will be retained by Macerich, PREIT said.

In other matters involving PREIT’s finances, the company amended credit agreements totaling just over $1 billion and borrowed $55 million. The company has pledged nine of its malls and three other properties to back the loans. PREIT owns regional malls including Willow Grove Mall, Cherry Hill Mall and Fashion District Philadelphia, which it redeveloped with Macerich.

The compensation committee of PREIT’s board also approved payments to reimburse Coradino and CFO Mario Ventresca Jr. for a 25% pay cut each took to their respective base salaries between July 27 and Sept. 30. Coradino has a base salary of $850,000 and Ventresca has a base salary of $450,000, according to the company’s most recent proxy statement.

PREIT (NYSE: PEI) has long been associated with what is now branded as Fashion District Philadelphia but had been known for decades as the Gallery.

PREIT and Macerich redeveloped the Gallery in a 50-50 joint venture that was initiated in 2014. The partnership received $90.5 million in tax payer handouts from the state and the city to support the redevelopment of the mall. Of that tax support, $55 million was in the form of tax increment financing, a controversial financing tool since TIFs are often put in areas where development would likely have happened without the financing.

The subsidies were approved based on estimates that a redeveloped Gallery would generate $194 million in new tax revenue over two decades, create jobs and boost overall economic growth in the city.

Fashion District Philadelphia opened in September 2019. The 1.1-million-square-foot urban mall has been struggling since the onset of the pandemic that initially shut down every mall and retail center in the state. The ongoing coronavirus pandemic then led some of Fashion District’s tenants to temporarily shutter operations. For example, City Winery, AMC Theater and Round One have remained closed and Century 21, a discount retailer, filed bankruptcy and vacated its store.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia retail space for sale or lease in Philadelphia or about any other Philadelphia properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

New Jersey Bank Picks High-Profile Philadelphia Building for its First Pennsylvania Branch

OceanFirst Bank will open its first retail branch in Pennsylvania after signing a 10-year lease to occupy 2,000 square feet at 1500 Market St. in Center City.

The Toms River, New Jersey-based bank has been shopping for a high-profile Center City location to serve as its first branch for more than a year. Susanne Svizeny, the former Wells Fargo executive who joined parent company OceanFirst Financial Corp. (NASDAQ: OCFC) last year in the newly-created role of president of the Greater Philadelphia region, said the building is the perfect choice.

Nightingale Properties and Wafra Capital Partners, which jointly own the two-building Market Street complex formally called Centre Square, last year launched a $12 million renovation of the plaza, retail and lobby areas in an effort to give the 45-year-old office complex a refresh. The new OceanFirst branch will be on the Market Street side of what is informally known as the “Clothespin Building” because of the giant clothespin sculpture outside its main entrance. It is situated across from City Hall and right next to a main entrance to Suburban Station and the Market Street Line.

“It’s just such a great location with all of that foot traffic,” Svizeny said. “I know a lot of our customers will be happy to know they can do business with us in the city now. And it really shows our commitment to the city.”

Virtually every major bank operating in the region has a branch on Market Street between City Hall and 20th Street — the city’s main business corridor. In all, there are 11 different banks that operate 17 retail locations with a combined $16.5 billion in deposits in that five-block strip. Many of those are among the locations for each bank with the highest number of deposits. When factoring in the entire 19102 and 19103 zip codes that also include busy streets such as John F. Kennedy Boulevard, Chestnut Street and Walnut Street, there are 17 different banks with 51 branches that hold a combined $35 billion in deposits, or more than 18% of all deposits in the entire eight-county area.

OceanFirst will be the second bank branch at Centre Square. Santander Bank has one facing 15th Street.

Svizeny said the location will be what OceanFirst calls one of its “super branch” locations that serve as regional hubs. Despite the “super” moniker, they are not larger than a normal retail branch. The super branches do not have traditional teller lines, instead focusing on universal bankers serving both transactional and customers service needs in an open floor plan that features a large, U-shaped table near the entrance.

Svizeny said the plan is to have the branch open by May and the bank will employ SOSH Architects of Atlantic City for the work on the space that is now gutted. Since opening a loan production office at Two Logan Square late last year, Svizeny said OceanFirst has built up $1 billion in loans, largely commercial real estate and commercial and industrial. It was also an active player in the Paycheck Protection Program.

In addition to the loan production office at Two Logan, OceanFirst has locations in Doylestown to serve the eastern suburbs and Newtown Square to serve the western suburbs and Delaware. Svizeny said the bank would like to add another in the King of Prussia/Conshohocken area if it can find the right bankers.

Long based in Ocean County, OceanFirst entered South Jersey through four acquisitions between 2016 and 2019:

OceanFirst Chairman and CEO Christopher Maherhas said in recent years that moving into New York and Philadelphia were strategic priorities. It took care of New York earlier this year by acquiringCountry Bank Holding Co. of New York City as well as Two River Bancorp of Tinton Falls in Monmouth County. Sources have said OceanFirst has been talking to other banks about finding a strategic fit in southeastern Pennsylvania, where deals in prior years have thinned the options for companies as large as OceanFirst.

“I know that Chris is always talking to other CEOs, but that’s a question for him,” Svizeny said.

For now, though, OceanFirst will focus on its organic growth and its new Center City location.

The following is a list of all retail bank branches on Market Street between 15th and 20th streets, with deposits listed as of June 30, according to FDIC data:

    • Santander, 1500 Market, $47M
    • Citizens,1515 Market, $187M
    • Firstrust, 1515 Market, $439M
    • PNC, 1600 Market, $8B
    • Republic, 1601 Market, $415M
    • Truist, 1635 Market, $66M
    • M&T, 1650 Market, $56M
    • Wells Fargo, 1700 Market, $131M
    • Citizens, 1735 Market, $2.5B
    • Meridian, 1760 Market, $28M
    • PNC, 1801 Market, $196M
    • BofA, 1818 Market, $118M
    • Republic, 1818 Market, $137M
    • TD, 1900 Market, $716M
    • Santander, 2000 Market, $3.1B
    • Citizens, 2001 Market, $315M
    • Wells Fargo, 2005 Market, $75M

*Article Courtesy of Philadelphia Business Journal

For more information about Philadelphia retail space for sale or lease in Philadelphia or about any other Philadelphia properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Goose Island Brewhouse in Fishtown Permanently Closes in Covid-19 Fallout

The popular Goose Island Brewhouse is Philadelphia’s Fishtown neighborhood has permanently closed after nearly two-and-a-half years of operation, the latest fallout from the Covid-19 pandemic.

The 10,500-square-foot brewpub announced the shuttering late Friday afternoon via its Facebook and Instagram accounts. Goose Island Beer Co. is based in Chicago, and has been owned by Anheuser-Busch InBev since 2011.

Goose Island Beer Co. opened its Philadelphia concept at 1002 Canal St. in spring 2018. The local brewhouse was well-trafficked by Philadelphians across the city, Fishtown residents and people attending shows at neighboring music venue Fillmore Philadelphia. The project includes indoor space as well as a large outdoor seating area.

Rivers Casino Philadelphia, Philadelphia Distilling and the apocalypse-themed restaurant Mad Mex also stand near to Goose Island Brewhouse.

Goose Island Brewhouse is situated across the street from the planned 35,000-square-foot Brooklyn Bowl entertainment complex that expects to open by the end of 2021. That development comes from the New York-based bowling company in partnership with Live Nation Entertainment Inc.

Fans of Goose Island Brewhouse took to social media on Friday to lament the closure.

“Now it’s official – worst year ever!” one Facebook user wrote. “You guys were our Friday nights, our work happy hours, the first place we brought our newborn son, our go to during covid!! My heart is shattered!”

“We are so sad to hear this news,” an Instagram user wrote. “We have LOVED the time we spent at Goose Philly playing music, enjoying the atmosphere (and the amazing brews!!!) The staff has always been kind, helpful, and fantastic!!!!”

The closure is among the latest in a wave of permanent shutterings that have washed over the region’s hospitality industry due to the pandemic. Other concepts that have permanently closed recently include Chef Tyler Akin’s Res Ipsa, Stephen Starr’s Continental Restaurant and Martini Bar in Old City, and Trattoria Giuseppe in Newtown Square.

*Article Courtesy of Philadelphia Business Journal

For more information about Philadelphia retail space for sale or lease in Philadelphia or about any other Philadelphia properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier  Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Lidl, ALDI Open New Grocery Stores in Philadelphia

Two German markets continue expansion into region

German grocery store Lidl is in the midst of a large expansion on the East Coast of the United States. Its latest store opened at 9175 Roosevelt Blvd. in Northeast Philadelphia. Above, a location in Middletown, Delaware.

Apair of grocery stores run by German-based companies opened their doors to the public this week in Northeast Philadelphia and West Poplar.

Lidl, the quickly expanding chain, held a grand opening of its new location at 9175 Roosevelt Blvd. on Wednesday, presenting the first 100 customers with gift cards ranging from $5 to $100. This is Lidl’s second store in Northeast Philadelphia. The first opened last year at 2290 East Butler St.

The company has plans to open 50 new stores on the East Coast by the end of next year, including a second store in Delaware County and several in South Jersey. It currently has South Jersey stores in Burlington, Cherry Hill and Vineland, as well as a location in Folsom, Delaware County.

Discount grocer ALDI also opened up another Philadelphia location on North Broad Street as part of a project supporting the neighborhood around the revitalized Divine Lorraine Hotel apartments.

The 15,000-square-foot location is ALDI’s largest in Philadelphia and features art celebrating Philadelphia’s history. Other locations in the city include stores in Brewerytown, South Philadelphia and West Philly.

ALDI also is planning a significant expansion across the United States, with plans to operate 2,500 stores by the end of 2022.

*Article Courtesy of Philly Voice

For more information about Philadelphia retail space for sale or lease in Philadelphia or about any other Philadelphia properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier  Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Bankruptcy Court Approves PREIT’s Reorganization Plan

A month after filing for Chapter 11 bankruptcy protection, the U.S. Bankruptcy Court for the District of Delaware approved a pre-packaged restructuring plan for Pennsylvania Real Estate Investment Trust on Monday.

The Philadelphia company expects to emerge from bankruptcy in early December, later than its initial expectation to be done with the proceedings by the end of November.

PREIT (NYSE: PEI) is hopeful the reorganization will give it more time and money to become a stronger company. Under the plan, the shopping mall owner will have access to $130 million in new financing as it relates to a senior unsecured facility and the elimination of a $20 million revolving facility designated for repaying mortgages.

The company also said that as part of the reorganization, its debt maturity schedule will be extended by three years.

None of these proposals are final until the agreements are executed and the company emerges from bankruptcy.

“We look forward to emerging from this process as a stronger, more innovative platform for our business partners,” said Joseph F. Coradino, CEO of PREIT, in a statement. “We were able to reach this outcome on an expedited basis thanks to the overwhelming support of our lenders, as well as the continued support of our employees, customers, tenants and vendors.”

The Philadelphia owner of malls including Plymouth Meeting Mall, Cherry Hill Mall and Fashion District Philadelphia, will come out of bankruptcy in an environment that remains challenging for retailers and their landlords.

Traffic to physical stores on Thanksgiving Day and Black Friday declined by 52.1% compared with 2019, according to Sensormatic Solutions, a retail research company. The drop can be attributed to several issues including the pandemic and shoppers hesitant about being in brick-and-mortar stores, several retailers that closed for the holiday and a continued shift to online buying.

PREIT voluntarily filed Nov. 1 for Chapter 11 bankruptcy protection after Strategic Value Partners, which owns 5% of PREIT’s debt, objected to a restructuring plan that 95% of PREIT’s other lenders approved. Strategic Value Partners finally relented and approved the pre-packaged plan.

PREIT continued to operate its malls during bankruptcy. When it filed bankruptcy, PREIT listed as having $2.4 billion in assets and total debt of just over $2 billion. Of its debt, $913 million is an unsecured loan it has with Wells Fargo, which is its largest creditor.

The company’s stock has made gains in the last week and closed Monday at $1.10 a share. The stock soared in after-hours trading Monday by nearly 24% on news of the bankruptcy approval.

Its 52-week low was 36 cents a share.

 

*Article Courtesy of Philadelphia Business Journal

For more information about Philadelphia retail space for sale or lease in Philadelphia or about any other Philadelphia properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier  Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

$52M Redevelopment Planned for Vacant Sears in Philadelphia

A partnership has paid $28.75 million for a former Sears in Northeast Philadelphia and has plans to invest another $24 million to redevelop the vacant department store.

Sears Holdings Corp. closed the store in April 2018 as part of a move to shutter 100 stores nationwide. The transaction was initiated six months before the onset of the Covid-19 pandemic and managed to cross the finish line with tenants and financing in place — something unusual these days for a retail development.

The redevelopment project is 98% pre-leased and no one is divulging the name of the 60,000-square-foot anchor tenant.

JKRP Architects designed the project.

A Starbucks and Jollibee, which is a fast-food chain from the Philippines that has fried chicken as its main offering, will occupy two separate outparcels. This will be the first Jollibee in the Philadelphia area.

The partnership was attracted to the property for a variety of reasons. The sheer size of the site, totaling a city block, was part of it. It also fronts three major streets, making it appealing for retailers wanting visibility and signage opportunities.

They anticipate starting construction in the next few weeks and having most of the redevelopment completed by next November.

*Article Courtesy of Philadelphia Business Journal

For more information about Philadelphia retail space for sale or lease in Philadelphia or about any other Philadelphia properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier  Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Aldi Readies to Open Long-Awaited Fairmount Avenue Store in Center City

Aldi, the German-based discount grocery chain, is scheduled to open a long-awaited store at 1300 Fairmount Ave. in Center City early next month.

It will join other grocers such as Giant, Acme and Whole Foods that have been expanding in Center City as its population has grown. Amazon is also expected to open a new store at a development proposed for 5th and Spring Garden streets in Philadelphia.

Aldi had signed in the fall of 2018 a long-term lease on 25,427 square feet at 1300 Fairmount but is now occupying 15,000 square feet. Why the store size shrank by roughly 10,000 square feet couldn’t be determined. A spokeswoman wasn’t immediately available for comment.

A New York real estate firm, developed 1300 Fairmount, a $190 million, 14-story, 624,575-square-foot building at the intersection of North Broad Street, Fairmount Avenue and Ridge Avenue. It has 478 apartments and is part of an ongoing renaissance underway along North Broad Street.

The Aldi is scheduled to open Dec. 3 and will be chain’s 11th in the Philadelphia area and part of its strategy to be the third largest grocery retailer in the United States by the end of 2022.

*Articles Courtesy of Philadelphia Business Journals

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