LOS ANGELES – August 27, 2014 – A fund advised by CBRE Global Investors has acquired a single-tenant grocery asset near Philadelphia.
Located at 1 Village Drive in King of Prussia, Penn., the trophy-quality grocery property has a 25-year ground lease with Wegmans for a 147,456 sq. ft. store. Constructed in 2012, the store is a prototypical design for the dominant grocer, which has 83 stores across the Northeast and is one of the largest private companies in the United States.
King of Prussia is the premier suburban retail submarket in the Philadelphia MSA and one of the most trafficked retail destinations in the Northeast. Immediately adjacent to the property is a high-volume fortress mall. Located at the confluence of I-76 (PA Turnpike), Route 202 and Route 422, Wegmans has excellent accessibility to the affluent suburban townships in the Philadelphia MSA.
The Wegmans parcel is the initial phase of The Village at Valley Forge, a 101.55-acre mixed-use development that will include lifestyle retail, apartments, and office/medical office properties as well as a children’s hospital. Once the high-profile development is complete, Wegmans will be the anchor.
This is the fund’s second retail acquisition in the Northeast, having acquired Porter Square Galleria, an urban retail center in an irreplaceable location on a subway line in Cambridge, Mass., earlier this year.
“Opportunities to acquire a retail asset of the quality, size and location of the Wegmans property in the Northeast are rare,” said Kim Hourihan, Senior Managing Director and Portfolio Manager. “This acquisition, coupled with our acquisition of Porter Square Galleria earlier this year, solidifies the fund’s position in highly sought-after Northeast retail holdings.”
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $92.8 billion in assets under management* as of June 30, 2014. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has approximately 44,000 employees in more than 350 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
*Assets under management (AUM) refers to fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.