$100M Redevelopment Eyed for Pennsylvania Retail Center

The Shops @ Rockvale. Image courtesy of Institutional Property Advisors

Fernmoor Homes has acquired The Shops @ Rockvale, a 581,462-square-foot regional outlet center in Lancaster, Pa. Institutional Property Advisors, a division of Marcus & Millichap, brokered the $30.5 million transaction on behalf of the seller, Wharton Realty Group, and procured the buyer.

Situated at 35 S. Willowdale Drive, on approximately 63 acres, The Shops @ Rockvale hosts more than 40 retailers. Carter’s, Crate & Barrel Outlet, Disney, Olive Garden and Cracker Barrel are among the property’s tenants. Located along Route 30, the retail center is less than 8 miles from downtown Lancaster.

IPA Senior Managing Director Brad Nathanson, Director David Crotts and Executive Managing Director Dean Zang led the brokerage efforts on the transaction.

Leveraging value-add opportunities

Fernmoor Homes will leverage the site’s existing value-add opportunities by executing a redevelopment plan. The new owner will add a residential component by demolishing 265,198 square feet of vacant commercial space in the shopping center. Plans call for 416 one-, two- and three-bedroom apartments, across 13 four-story buildings, on the backside of Rockvale Road. The multifamily community is set to also incorporate the East Lampeter Rail Trail.

The company will submit its $100 million development plan to the East Lampeter Township this year, with a project completion slated for 2028. A clubhouse, a pool, a dog park, a fitness center, as well as walking trails, firepits and a picnic area are among the planned amenities at the upcoming residential community.

Due to changing shopping habits and the rise of e-commerce, more and more retail owners and investors are interested in repurposing and redeveloping their existing space. Some of these strategies include converting indoor malls to open-air, mixed-use centers or adding multifamily components, a process that is carefully tailored to each property’s unique characteristics.