Hampshire Real Estate Cos. has agreed to pay $13.55 milllion -- $148 a square foot, very roughly about one-third of what Simon Property Corp. paid in the equity part of its purchase of the King of Prussia shopping centers last year -- to developer J.S. Hovnanian and Sons, for its 11-year-old Town Crossing Shopping Center, a 91,500 sq ft "power center" at 2703 NJ 541, Burlington, NJ.
Brad Nathanson, senior director for broker Marcus & Millichap's National Retail Group, Philadelphia office, represented buyer and seller. Nathanson also helped Hovnanian sell Town Square Shopping Center, Mount Laurel, for $19 million earlier this year.
“The new ownership acquired this asset because of its dominant strategic location, coupled with the fact that it was delivered free and clear of debt,” Nathanson said in a statement. Current tenants include Dick's Sporting Goods, Office Max, TGI Friday's, IHoP, Burger King, Sleepy's, AT&T Wireless.
Stores in the center that own their own buildings and aren't included in the sale include Home Depot, Kohl's and Target.
Some tenants at the complex are paying "below-market rents," according to Nathanson. The buyer was attracted, in part, by the possibility business will improve as development resumes in Burlington County and the nearby I-295 and New Jersey Turnpike corridors.