Charter Realty & Development Corp. and Regency Centers Corporation (NYSE:REG) closed on the acquisition of Fellsway Plaza, a 150,000-square-foot neighborhood center anchored by a recently constructed Stop & Shop. Located in Medford, Mass., the property was acquired from Berenson Associates of Boston through a joint venture between Charter and Regency. Permanent and development financing for the transaction was provided by PNC Bank. Hank Blake of Blake Commercial Property Group represented the buyer in this transaction.
Charter Realty and Regency Centers - Fellsway Plaza. (Photo: Business Wire)
“Fellsway Plaza is an iconic infill location in the Boston metro area that cannot be replicated; exactly the kind of property we will continue to target,” said Paul Brandes, principal of Charter.
Constructed in multiple phases dating back to the 1950s, Fellsway Plaza has not changed hands since its original ownership built the property, which has always served as the gateway retail location for consumers traveling south on the Fellsway toward Boston. Stop & Shop at this location has consistently outperformed the other area grocers serving this trade area.
“We are excited to add this high quality asset to our growing portfolio and look forward to expanding our footprint within the Boston MSA,” said John Hricko, vice president and regional officer at Regency Centers. Dan Zelson, principal of Charter adds, “Our redevelopment plans make this the type of project tenants are seeking in today’s marketplace. There are few opportunities of this nature.”A modern theme will update the building’s aesthetics, while planned upgrades in existing tenancies will reinvigorate the property’s tenant mix. The common areas will be renovated with plantings and pedestrian scale elements to further enhance the shopping environment. Slated to begin in the spring of 2014, construction will include a new satellite building along the property’s frontage. Charter will be responsible for development, property management and leasing on behalf of the joint venture.