New York-based ARC Real Estate Group LLC acquired the retail building at 250 S. Conestoga Dr. in Shippensburg, PA from Bountiful, a Utah-based affiliate of Excel Trust, Inc., for $24.35 million, or about $142 per square foot.
The 171,069-square-foot, freestanding retail building was constructed in 2008 on 20.9 acres in the Harrisburg Area West submarket of Cumberland County, between Hwy 174 and Rte. 11. It is adjacent to a Walmart Supercenter and across from a Big Kmart-anchored retail center, near Shippensburg University.
The asset is fully-occupied by Lowe's Home Improvement on a 22-year, triple-net lease with 18 years remaining, plus options. It traded at a closing 6% CAP rate, and represents one of the highest prices paid for a Lowe's-occupied asset in recent years.
Jeff Conover and Patrick Luther with Faris Lee Investments represented the seller. Preet Sabharwal with Marcus & Millichap represented the buyer.
"Our strategy was to aggressively market this asset to both private capital and institutional investors and highlight the strength of the credit tenant as well as its long-term lease, creating long-term security and stability for the investor," said Conover. "It attracted an impressive amount of interest and six offers. We ultimately selected ARC Real Estate Group, LLC, a private, New York-based family office, as the ideal buyer for this asset."
Please see CoStar COMPS #3151728 for additional information on this transaction.