The site of a Wegmans at the Montgomery Mall has been purchased by an out-of-state real estate investor for $22.6 million, becoming the Philadelphia region's latest grocery store property to trade hands in the last several years, reports the Philadelphia Business Journal.
ExchangeRight of Pasadena, California, acquired the 128,000-square-foot Wegmans in North Wales from Kohan Retail Investment Group. Great Neck, New York-based Kohan Retail listed the site a month after buying the Montgomery Mall in a foreclosure sale for $55 million.
Selling off individuals parcels, especially spaces occupied by grocers or other highly regarded tenants, is not uncommon for real estate investors. Buffalo, New York-based Wegmans Food Markets Inc. started its lease on the space at 500 Montgomery Mall North in November 2013. The lease expires in November 2033 and there are five 10-year options to extend the lease.
ExchangeRight specializes in buying net-leased properties — a lease where the tenant pays at least some of the property taxes, maintenance fees and insurance costs. The company's website also says it looks for deals involving long-team leases and "grocery-anchored shopping centers with investment-grade or equivalent-credit grocery anchors, strong operations/store sales, and strong retail locations."
Get Philly local news, weather forecasts, sports and entertainment stories to your inbox. Sign up for NBC Philadelphia newsletters.
Check out PBJ.com's full article for more about how other grocery-anchored properties have been plentiful across the Philadelphia area.
Stay in the know on all things business with the Philadelphia Business Journal.
