MILLSBORO – An Ohio-based owner and operator of shopping centers has acquired Peninsula Crossing, an open-air shopping center in Millsboro.
Chase Properties, a Beachwood, Ohio-based company, announced the acquisition on May 2 but did not disclose an acquisition price.
The April 27 deed transfer was delayed in being recorded in Sussex County until June 22 for undetermined reasons. Chase acquired the property for a combined $16.5 million from G&I VIII Peninsula LLC, a subsidiary of New York-based real estate investment firm DRA Partner.
Chase is a full-service owner and operator of shopping centers located in 19 states throughout the Midwest, Southern and Eastern U.S. Founded in 1973, it owns and manages shopping centers comprising over 7.3 million square feet. Peninsula Crossing is its first asset in Delaware, though.
“Our strategy is to acquire dominant shopping centers in smaller markets. We think Peninsula fits that strategy with the strength and drawing power of BJ’s, Lowe’s, Aldi and Petsmart, along with the other shops and restaurants,” Andy Kline, Chase Properties’ co-CEO, told DBT of the acquisition. “Ideally, we’d like to build off of this acquisition to acquire more in the mid-Atlantic.”
Chase was “able to capitalize on this off-market opportunity through a strong relationship with the seller [DRA Partners],” according to the sale announcement.
The shopping center, which is anchored by BJ’s Wholesale Club and PetSmart stores, has become a bit of a hot commodity in the coastal Delaware region. Last year, the $26.03 million sale of the BJ’s Wholesale Club from DRA Partners to Dallas-based public real estate investment firm Spirit Realty ranked as the state’s 10th largest commercial sale, and the largest retail sale.
Chase Properties acquired a bulwark of the shopping center outside of the BJ’s Wholesale Property, including the PetSmart location, the site of an Aldi grocery store set to open this year, and a northern side strip mall.
*Editor’s note: This story was updated following the receipt of the county deed transfer.
