Exclusive: PGIM Lands $132M Refi for Retail Asset
Wells Fargo Bank provided the loan for the grocery-anchored center.
PGIM Real Estate has obtained $132 million in refinancing for The Promenade Shops at Saucon Valley, a 2006-vintage retail asset, according to Yardi Research Data. Wells Fargo Bank originated the variable-rate loan for the 475,000-square-foot property, located in Center Valley, Pa.
Encompassing nine buildings, the open-air lifestyle center spreads across 60 acres and is anchored by The Fresh Market.
The tenant roster includes J. Jill, Bath & Body Works, L.L. Bean, J. Crew Factory and Pandora Jewelry, among others. The property’s dining and entertainment options feature Red Robin, Top Cut Steakhouse and AMC Theatres.
Located at 2845 Center Valley Parkway in the Allentown-Bethlehem market, the retail center has access to Interstate 78 and U.S. Road 309. Allentown is some 6 miles away.
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The center’s Main Street has water fountains, fire pits, gathering areas, and a stone gazebo, a grand platform event stage and a Town Square surrounded by amphitheater-style seating. MSC is the center’s leasing manager.
PGIM has recently received financing for other major assets as well. In joint venture with Norges Bank Investment Management and SJP Properties Co., the company obtained a $507 million loan to refinance debt associated with 11 Times Square in Manhattan.
Together with partner SL Green Realty Corp., PGIM closed on a $1.4 billion fixed-rate mortgage loan for 11 Madison Avenue, a 2.3 million-square-foot office building.
Grocery-anchored centers still in demand
Among major retail property subtypes, grocery-anchored retail centers have long performed well, according to a JLL report. That was the case even as the COVID-19 pandemic put downward pressure on most retail assets, as well as during the post-pandemic years’ interest rate squeeze, which tightened availability due to minimal new supply additions.
Grocery stores also saw a steady rise in foot traffic after the pandemic, JLL reported, citing Placer.ai data. Foot traffic rose to nearly 17.2 billion visits in 2024, marking a 1.0 percent increase from 2023 and a 10.9 percent increase from 2019.
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