“Opportunity acquisition” represents significant retail asset in portfolio of Baltimore-based commercial real estate company and second project in Pennsylvania marketplace
BALTIMORE, MD (February 12, 2016) – Chesapeake Real Estate Group, LLC (CREG), a Baltimore-based commercial real estate operating company, and their financial partner Cicero Capital Partners, LLC (CCP) have announced the acquisition of the Palmer Super Center, a 100,272 square foot retail shopping center located on 3725 Nicholas Street in Easton, Pennsylvania. The asset, which was approximately 85% leased at the time of the purchase, was acquired from 3725 Nicholas Street Holdings Limited Partnership on Auction.com. The acquisition, combined with immediate renovation and leasing costs result in a total investment of more than $7.5 million.
This represents a significant retail project for Chesapeake Real Estate Group, which develops and owns large-scale national warehouse and industrial buildings, as well as smaller regional retail and office buildings located in the Mid-Atlantic region. It is the company’s second asset in the Pennsylvania marketplace. CREG is currently developing more than 2.6 million square feet of space and, last year, delivered or commenced construction of approximately 1.6 million square feet of space.
Palmer Super Center is anchored by Redner’s Warehouse Market, which is under a long term lease, and includes six complementary tenants. It is located near William Penn Highway and is within close proximity to PA Route 33 and the Pennsylvania Turnpike. Approximately four spaces totaling 15,000 square feet and one or two pad sites remain available for lease. Chesapeake Real Estate Group plans to completely renovate the center to improve its aesthetics and increase leasing velocity.
“This acquisition fits into our company’s initiative to invest in income-producing real estate with significant short and long term value-added potential, based on the presence of a strong grocery anchor, its position in a stable and growing marketplace with strong demographics and the excellent leasing upside of the center,” explained Jim Lighthizer, Founder and Owner of Chesapeake Real Estate Group. “We purchased Palmer Super Center below replacement cost, at a double digit cap rate, with excess land and 15% vacancy, and are in the position to add significant value with the addition of new retail uses. Our team is extremely familiar with the dynamics of the Lehigh Valley region, and believe the area has every fundamental, including strong business drivers, to sustain consumer growth.”
Palmer Super Center was completed renovated in 2001 and features a large on-site parking field and pylon signage. Nearly 60,000 consumers, including more than 21,000 households, reside within a three-mile radius of the center, with an average household income exceeding $70,000.
Chesapeake Real Estate Group, LLC, headquartered in Hanover, Maryland is a full- service commercial real estate operating company that includes brokerage, property management and development services. The firm currently has more than two million square feet of industrial projects planned in the Mid-Atlantic region. Notable projects include the Landover Logistics Center, Steeplechase @95 International Business Park, 8235 Patuxent Range Road and 1200 East Patapsco Avenue. For more information visit www.cregllc.com
Cicero Capital Partners, LLC (“Cicero”), established in 2009, is a State of Maryland registered investment adviser located in Ellicott City, Maryland. Cicero specializes in alternative asset management strategies, with expertise in commercial real estate, commercial mortgage backed securities, agency mortgage REITs and other publicly traded real estate securities. For more information visit www.cicerocapitalpartners.com