HFF arranges financing for new grocery-anchored retail center in Philadelphia’s Center City
PHILADELPHIA, PA – February 2, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged permanent financing for the retail portion of Rodin Square, a 79,233-square-foot, newly-built, fully-leased, grocery-anchored mixed-use property in Philadelphia’s City Center area.
HFF worked on behalf of the borrower, a partnership between Rodin Group and Benenson Capital Partners, to secure the 20-year, fixed-rate non-recourse loan through Principal Real Estate Investors, LLC.
Rodin Square is a best-in-class mixed-use development that provides a synergistic mix of multifamily and market-leading retailers, each of which is the dominant brand in their respective category today. The property is anchored by Whole Foods Market (S&P BBB), the leading U.S retailer for organic and health food products, with the remaining 31 percent of the property comprising Thomas Jefferson Hospital (Aa3), Philadelphia’s largest private employer; CVS Pharmacy (S&P BBB), the largest U.S. pharmacy by market capitalization; and Santander Bank (S&P BBB+), the 18th largest bank in the world by assets. All of the tenants at the property have long lease terms ranging from 10 to 30 years.
Whole Foods Market is relocating from its previous site, a smaller space one block from the Rodin Square site that lacked the available parking to match the significant demand the store created. Now, with a 55,000-square-foot footprint, the store will operate as a flagship for the Mid-Atlantic with 170 parking spaces exclusive to the store. Whole Foods partnered with notable local chefs to open smaller, in-store versions of their restaurant concepts, including Shawn Darragh and Ben Puchowitz's ramen bar, Cheu Noodle Bar; CookNSolo's hummusaya Dizengoff; Wiz Kid, Rich Landau and Kate Jacoby's vegan fast-food concept; and Severino Cucina Rustica, a restaurant offshoot of South Jersey's famed Severino Pasta Company, in addition to two pubs, a mobile cocktail cart and a coffee and juice bar inside the 140-seat food hall.
Positioned on 2.9 acres at 501 North 22 Street in City Center’s affluent Logan Square and Art Museum/Fairmount neighborhoods, Rodin Square is within walking distance to the Philadelphia CBD and proximate to Kelly Drive and Fairmount Park. In addition, the site overlooks the Philadelphia Art Museum, the Rodin Museum and other major tourist attractions. With its recent population growth of young professionals and empty nesters, this submarket has supported significant residential development; the multifamily portion of the project, the 293-unit Dalian on the Park, is constructed atop the retail portion of the mixed-use development.
The HFF team representing the borrower was led by managing directors Ryan Ade and Chris Munley and senior managing director Mark West.
“We are excited by the success of the entire development and its symbiotic relationship with the neighborhood and city of Philadelphia as a whole,” said Victor Rodin of Rodin Group.
“Rodin Square is an excellent example of a mixed-used lifestyle development and has become a new icon for the City,” added James Stifel of Benenson Capital Partners.
About Rodin Group
With over four decades of experience and considered a leader in the real estate profession,
Rodin Group is known for its specialization in the acquisition, development, and financing of real estate for partnerships, individuals, and institutional clients both domestically and internationally. Rodin Group has invested in over 100,000 apartment units, over 4 million commercial square feet and has experience in the acquisitions of major real estate portfolios.
About Benenson Capital Partners
Since 1905, Benenson Capital Partners, a family owned real estate company, has transformed domestic and international real estate. Buoyed with strength and stability through a century of significant economic cycles, the Company's prescient judgment, long-term perspective, consistent vision and a set of unyielding core values has resulted in strong financial returns and longstanding leadership in the real estate industry. Visit benensoncapital.com for more information.
Holliday Fenoglio Fowler, L.P. (“HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.