Former Wegmans Site at Montgomery Mall Sells for $22.6M

montco mall wegmans
Google Maps

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."

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

Copyright bizjournal
Contact Us