The Wegmans in the Montgomery Mall and the Whole Foods Market at the Plymouth Meeting Mall have both recently been put up for sale, writes Natalie Kostelni for the Philadelphia Business Journal.
It’s not out of the ordinary for real estate owners to sell off parts of a larger property.
For example, in 2019 PREIT – the same company behind the Plymouth sale – sold a building at the Exton Square Mall that is leased to Whole Foods for over $22 million.
Leases with excellent credit tenants, such as Wegmans and Whole Foods, are very desirable. The leases are typically long-term, rents are stable, and with options to extend the lease, they are usually a safe investment. for the investors.
The Montgomery Mall Wegmans started its lease in November 2013, with its expiration in November 2033. There are several options to extend it.
However, the Plymouth Meeting property is part of a capital-raising initiative by PREIT.
According to PREIT’s spokeswoman Heather Crowell, there are $120 million in asset sales that it anticipates could close by mid-2022, and Whole Foods is one of them.