May 16, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $55.25 million sale of and the $50.4 million acquisition financing for MacArthur Commons, a 371,886-square-foot, fully leased, grocery-anchored power center in the Lehigh Valley of Pennsylvania.
The HFF team marketed the property on behalf of the seller. An affiliate of Abrams Realty & Development purchased the asset free and clear of existing debt. Additionally, working on behalf of the new owner, the HFF team secured a floating-rate acquisition loan. The buyer was able to obtain long-term lease extensions with the anchor tenants and gained approval to develop several outparcels, thus creating a highly competitive marketing process for the financing.
MacArthur Commons is fully leased to GIANT Food Stores along with multiple national anchors, including Burlington, Dick’s Sporting Goods, Big Lots and T.J.Maxx. Housed on 47 acres at 2631 MacArthur Road, the center is situated in the “go to” retail destination in the region and is accessible via Route 20 with more than 44,000 vehicles passing per day. The center’s Lehigh Valley location places it approximately 65 miles north of Philadelphia and less than five miles north of Allentown. More than 93,478 residents earning an average annual household income of $60,731 live within a three-mile radius of the center.
The HFF team representing the seller included managing director Chris Munley, director Michael DiCosimo and senior managing director Jose Cruz.
The HFF debt placement team representing the borrower included managing director James Conley.
“Thanks to the HFF team of Chris Munley and James Conley for helping us to understand this fabulous value-add play and in facilitating a great working relationship with both the seller and the lender,” said Peter Abrams, founder of Abrams Realty & Development. “This redevelopment play is state of the art in the ever-evolving retail market in which we find ourselves.”
“MacArthur Commons is a top-tier shopping center and location within the Lehigh Valley,” Munley added. “The offering generated significant interest from private and institutional buyers proving out the value proposition for this property.”