Heidenberg Properties Sells 229 KSF Shopping Center

Hershey Square. Image courtesy of JLL Capital Markets

Heidenberg Properties has sold Hershey Square, a 229,724-square-foot shopping center in Hummelstown, Pa. JLL Capital Markets brokered the transaction on behalf of the seller.

CommercialEdge data shows that Heidenberg purchased the retail center for $28.5 million from Hershey Trust Real Estate back in 2014. The same source shows that in 2020 the property became subject to a $32 million loan originated by The Provident Bank.

According to JLL, approximately 55 percent of the center’s income derived from credit tenancy and almost 81 percent of the gross income comes from its national tenant lineup.

Completed in 1994, Hershey Square comprises four buildings spread across a 28.5-acre site. The shopping center is anchored by T.J. Maxx, Weis and Big Lots. Other tenants at the center include AT&T, Five Below, Planet Fitness, Five Guys, Chipotle, Verizon, Goodyear, VisionWorks and Panera. The property was 98 percent leased at the time of the sale.

Situated in the Dauphin County, the grocery-anchored center is located at 1130-1198 Mae St. The property is right off the intersection of Route 422 and Route 322, in an area where the daily traffic count reaches approximately 50,000 vehicles, according to JLL. Hershey Square serves a population of 268,947 residents and 110,411 households within a 10-mile radius, with an average household income of $78,533.

Managing Director Colin Behr, Senior Managing Director Christopher Munley and Jim Galbally led the JLL Capital Markets’ Investment Sales and Advisory team. The same brokers recently represented PREIT in the $27 million sale of a 65,155-square-foot Whole Foods Market parcel in Plymouth Meeting, Pa.