JLL Capital Markets announced today that it has arranged a $42.95 million loan facility for the redevelopment of Drexeline Town Center, a to-be-built, 348,185 square-foot, mixed-use, ShopRite-anchored project with multi-housing, retail and self-storage space in the Philadelphia-area community of Drexel Hill, Pennsylvania.
JLL worked on behalf of the borrower, a partnership between affiliates of MCB Real Estate, LLC and The Hampshire Companies, to place the loan with Investors Bank, a division of Citizens Bank. Loan proceeds will enable the borrower to complete the project.
Drexeline Town Center will be a cohesive, walkable, “town center” environment that features a 72,000-square-foot, state-of-the-art “destination” ShopRite Supermarket; a Wawa convenience store with fuel service; a PNC Bank branch; and 20,440 square feet of pad and inline retail space. Future phases will include 172-unit luxury multi-housing apartments; and a 120,000-square-foot self storage facility. The project has direct access to mass transit with the integration of the Septa rail station adjacent to the property.
After six long years, the sponsorship was able to successfully secure approvals for the redevelopment of the center.”
Positioned on 18.5 acres at 5100 State Rd., the site is currently improved as a five-building retail and office property constructed between the 1950s and early 2000s. The project’s location at the southeast corner of Route 1 and State Road will now include direct access from Route 1 as well as improved, signalized access from State Road. Located nine miles west of Philadelphia’s central business district, the area is surrounded by a dense residential population of 155,750 residents earning an average annual household income of $104,595 within a three-mile radius, providing a strong customer base for quality, essential retail.
The JLL Capital Markets team representing the borrower was led by Senior Managing Directors Jon Mikula and Michael Klein and Vice President Michael Lachs.
“After six long years, the sponsorship was able to successfully secure approvals for the redevelopment of the center,” Klein said. “Investors Bank quickly recognized the benefits that this transformed center would have on the community and was able to provide a unique loan structure that will enable the borrower to execute it’s redevelopment plan.”
JLL Research’s recently released Grocery Tracker 2022 report tracked the fastest-growing grocers in the U.S., with ShopRite ranking as the eighth-fastest growing grocery store chain in 2021. The report also details grocery-anchored retail posted the second-highest level of activity recorded for property transactions, with trades toppling $13.3 billion.
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.
