KING OF PRUSSIA, PA. — A fund advised by CBRE Global Investors has acquired King of Prussia Town Center, a newly constructed, open-air shopping center located at 155 Village Drive in King of Prussia, an affluent suburb of Philadelphia. The sales price and seller were undisclosed, but various media outlets have reported that the fund acquired the 263,423-square-foot project from developer JBG Cos. for $183 million.
King of Prussia Town Center is the retail component of The Village at Valley Forge, a 122-acre master planned development by Realen Corp. that will feature nearly 3,000 residential units and 1 million square feet of commercial space upon completion. The development also features the newly opened Children’s Hospital of Philadelphia Specialty Care & Surgery, King of Prussia and a 130,000-square-foot Wegmans grocery store, which is owned by the same CBRE-backed fund.
King of Prussia Town Center’s average traffic count is more than 360,000 vehicles daily, according to CBRE Global Investors. The development is situated near King of Prussia Mall, a 2.3 million-square-foot superregional mall owned and operated by Simon Property Group.
King of Prussia Town Center was 87 percent leased at the time of sale to retailers including REI, LA Fitness, Muse Paintbar, GNC, Road Runner, Xfinity, Ulta Beauty and Nordstrom Rack. The property’s dining options include Fogo De Chao Brazilian Steakhouse, City Works, Paladar Latin Kitchen & Rum Bar, Davio’s, Choolaah Indian BBQ, Founding Farmers, Mission BBQ and Starbucks Coffee.
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“King of Prussia Town Center is a one-stop shopping and dining destination located on the border of Pennsylvania’s wealthiest counties, serving some of the nation’s most affluent and well-educated populations,” says Kim Hourihan, portfolio manager at CBRE Global Investors. “The combination of attractive demographics and exceptional accessibility makes the property the ideal location for retailers and restaurants alike.”
The fund team plans to lease the remaining vacancy at King of Prussia Town Center and hold the asset for long-term stable cash flows.
Los Angeles-based CBRE Global Investors is a global real estate investment management firm with $86.5 billion in assets under management as of March 31, 2017. The firm is an independently operated affiliate of CBRE Group Inc. (NYSE: CBG), which has more than 75,000 employees in approximately 450 offices (excluding affiliates) worldwide.
— John Nelson