Larchmont Commons at 3103-3117 Route 38 West in Mount Laurel — Courtesy: JLL
By Joshua Burd
An investment firm has acquired a nearly 130,000-square-foot shopping center in Mount Laurel, under a newly announced transaction by brokers with JLL.
The sellers, RPC Real Estate and Merion Realty Partners’ asset management group, reaped $18.25 million from the sale of what’s known as Larchmont Commons, JLL said. Gorman & Co. LLC purchased the 128,172-square-foot property at 3103-3117 Route 38 West, which has both grocery and gym anchors with Aldi and Planet Fitness as tenants.
JLL senior managing directors Chris Munley, James Galbally and Jose Cruz and Senior Director Colin Behr represented the sellers. A debt placement team including Senior Managing Director Ryan Ade represented the new owner in sourcing a $12.9 million fixed-rate acquisition loan with an institutional capital source.
“There has been a steady increase in investor demand for grocery-anchored product within the Greater Philadelphia marketplace, resulting in correlating cap-rate compression since the start of 2019,” Munley said. “With the steady flow of new capital JLL has witnessed entering the retail investment market, we anticipate that to continue into 2020.”
Other tenants at the 88 percent leased complex include Dollar Tree, Hair Cuttery, The UPS Store and Kumon Learning Center. The center is less than 1.7 miles from Interstate 295, which provides a direct connection to the New Jersey Turnpike, and about 12 miles from downtown Philadelphia.
“The complementary nature of the tenant roster, highlighted by Aldi, Planet Fitness and Dollar Tree, drove both investor interest and pricing during the sales process,” Behr said.