Open-air power center in south Philadelphia secures $55M in financing

PHILADELPHIA, Feb. 21, 2024 – JLL Capital Markets announced today that it closed the $55 million financing of Quartermaster Plaza, a 456,208-square-foot, dominant, open-air shopping center located in in South Philadelphia, Pennsylvania.

JLL worked on behalf of the owner, DRA Advisors and KPR Centers Partnership, to secure the five-year bank loan. DRA and KPR originally purchased the property in July of 2022 as one of a thirty-three grocery-anchored shopping center portfolio from Cedar Realty Trust. 

Built in 2004, the 99-percent-leased Quartermaster Plaza is anchored by BJ’s, The Home Depot and Sprouts Farmers Market.  The property boasts a weighted average lease term of eight years and 15.7 years of weighted average tenure. 96% of its gross income is derived from a national and credit tenant lineup that includes Bank of America, Wendy’s, Walgreens, PetSmart, Planet Fitness and more. In addition, the property has enjoyed significant leasing momentum over the last 36 months, with over 53,000 square feet of new leases signed and 191,000 square feet of renewals executed.

Situated at 2200 W. Oregon Ave., Quartermaster Plaza is the dominant, center-of-gravity shopping center along Oregon Avenue, one of the most active retail corridors within Philadelphia city limits and the main east-west thoroughfare. The property is currently ranked as the 2nd most visited shopping center within a five-mile radius with over 3.7 million visits over the last 12 months. The center also offers proximity to I-76, the most highly trafficked interstate in the state of Pennsylvania, and within a three-mile radius is a population of approximately 328,145 and an average household income of $88,810.

The JLL Retail Capital Markets Debt Advisory Team was led by Senior Managing Director Michael Gigliotti, Senior Managing Director James Galbally, Senior Director Michael Pagniucci and Associate Blaine Fleming.

“We were able to attract very competitive lender interest for this property from multiple capital sources to the benefit of the owners DRA and KPR. Lenders appreciate the in-fill location, high-performing anchor tenant line-up and institutional ownership that continues to create value since their 2022 acquisition,” said Pagniucci.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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DRA Advisors LLC is a New York-based registered investment advisor with approximately 95 employees specializing in real estate investment management services for institutional and private investors, including pension funds, university endowments, sovereign wealth funds, foundations, and insurance companies.  Since DRA was founded in 1986, the firm has opened additional offices in Miami and San Francisco while acquiring approximately $39 billion of real estate.  The acquisitions include 94 million square feet of industrial, 65 million square feet of office, 87 million square feet of retail and 85,000 multifamily units.  As of September 30, 2023, DRA has $13.2 billion in gross assets under management. http://draadvisors.com.

KPR has a defined strategy of acquiring retail and industrial properties within select markets that offer a compelling opportunity to create value. We are a vertically integrated investor with in-house retail leasing, management and development operations tailored to maximize value through proactive leasing, repositioning, and redevelopment of our properties. Established in 2003, KPR has since expanded its footprint in 15 states within the greater New England, New York State, Mid-Atlantic, and Southeast submarkets. For additional information, visit www.kprcenters.com