Barclay Farms Shopping Center at 1401 Marlton Pike in Cherry Hill — Courtesy: Bergman Real Estate Group
By Joshua Burd
Bergman Real Estate Group and Capstone Realty Group USA have acquired a nearly 88,000-square-foot retail property in Cherry Hill for $16.1 million, the firms announced.
Known as Barclay Farms Shopping Center, the complex at 1401 Marlton Pike is 96 percent occupied by tenants such as Planet Fitness, Dollar Tree and several restaurants and retail outlets, according to a news release. The buyers also noted that the site has an additional 45,000-square-foot parcel ready for development, adding to the appeal of the 13-acre property.
Steven Fleissig of Greenberg Traurig LLP represented Bergman and Capstone in the deal. Jerome Kranzel from CBRE’s Philadelphia capital markets team represented the seller, Kaiserman Co. Inc., which owned the property for more than 20 years.
“What initially attracted us to the site was its undeniable old-world charm, evoking nostalgic memories of your neighborhood shopping center that has that special character we all love,” said Michael Bergman, CEO and president of Bergman Real Estate Group. “But, looking deeper, its vast expansion potential is what truly stood out — paving the way for diverse retail uses and even medical offices that we feel will create tremendous upside value.”
Bergman and Capstone plan to add value through facade upgrades, new monument signage, lighting modifications, new landscaping and parking lot and sidewalk work, among other improvements at the 87,750-square-foot complex, the news release said. They’re working alongside Jason Wolf of Wolf Commercial Real Estate to lease the remaining space, as they contemplate additional retail or medical office development.
In doing so, they’ll look to capitalize on its location just off Interstate 295, as well as the region’s population density and favorable demographics.
“This deal continues the trend of strong demand for experiential and service-based retail that was boosted by the pandemic,” said Brian Rand, director of acquisitions at Bergman. “Consumers realized, once their ability to enter public places was taken away, how much these experiences meant to their overall mental and physical health. Humans are social beings, and being able to go out and enter establishments, whether to eat, get a haircut or any other experience, plays a significant role in our overall happiness.”
Rob Friedberg, managing partner of Capstone, added: “This acquisition was appealing to us because it lends itself to more expansion capability.”
For Bergman, which is based in Woodbridge, the deal marks a first for a firm that has long focused on office buildings.
“For over 30 years, Bergman Real Estate Group has established itself as a leader in the New Jersey office market, assembling a portfolio of over 2.25 million square feet in 22 buildings,” Bergman said. “Barclay Farms is our first retail acquisition and represents our current business plan to diversify into other commercial real estate assets, including industrial/flex, medical office and multifamily properties.”
