October 25, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the sale and financing of Westgate Mall, a 270,000-square-foot enclosed mall in the Lehigh Valley community of Bethlehem, Pennsylvania.
The HFF team marketed the property on behalf of the seller. Additionally, HFF worked on behalf of the buyer to secure financing. New ownership is the joint venture between Onyx Equities, LLC and PCCP, LLC.
Situated on 22.6 acres on Schoenersville Road, Westgate Mall is adjacent to the intersection of Route 22 and Route 378, providing quick regional access to Lehigh Valley, Philadelphia and New York. More than 93,900 residents earning an average annual household income of $71,641 live within a three-mile radius. Westgate Mall is anchored by Weis Markets, Rite Aid and Sky Zone; was formerly anchored by The Bon Ton; and is adjacent to Lehigh Valley Hospital.
“We are pleased to have finalized this acquisition and look forward to implementing Onyx’s signature, value-add strategy in partnership with PCCP,” said Stephen Sullivan, chief investment officer at Onyx Equities.
“We are excited about implementing our proven repositioning strategy and revitalizing this well-located retail center,” added Matthew P. Flath, Onyx’s vice president of Asset Management.
The HFF team representing the seller included managing director Chris Munley and director Michael DiCosimo.
“The Lehigh Valley is one of the fastest-growing regions within the state of Pennsylvania, supported by significant job and resulting population growth,” Munley said. “We have seen a considerable amount of both institutional and private, out-of-market capital targeting the region and retail shopping centers in particular.”
HFF’s debt placement team representing the borrower included managing directors Steven Klein and Ryan Ade.
“HFF appreciates the opportunity to represent both Onyx Equities and PCCP in this transaction,” Klein added. “We believe the sponsorship will add significant value to the property, creating a best-in-class asset that will greatly benefit the community.”
Cole Schotz P.C. represented Onyx Equities in the acquisition, joint venture with PCCP and financing. Jordan Metzger led the team that included Robert DiPisa, John Park and Samantha Epstein.
“Westgate Mall is next in the line of value-add acquisitions and turnarounds, which is the hallmark of Onyx’s success and leadership in the Northeast retail and office markets,” Metzger said. “Cole Schotz is proud to be a long-standing member of the Onyx team and congratulates Onyx on another successful transaction.”