NY Firm Pays $55M for Shrewsbury Retail Landmark; Sovereign Bank Finances Deal

SHREWSBURY, MA—One of the region’s longest privately held retail properties has been sold for $55 million to a New York-based investment group. Backed by a $40 million loan from Sovereign Bank, Charter Realty & Development’s purchase of the White City Shopping Center was negotiated by the Capital Markets Group at CBRE/New England on behalf of the sellers, family members of original builder Albert Shore.

CBRE/NE’s investment sales team did not respond to inquiries regarding the assignment, and efforts to contact Charter principal Paul Brandes and the sellers by press deadline were also unsuccessful. Nonetheless, records indicate the deal has been consummated, and one market watcher spoken to maintains the buyers have the experience to enhance a traditionally vibrant retail asset. “They are really hands-on,” the source says of Charter, which owns retail centers throughout the region, according to the firm’s website that lists holdings in Connecticut, Maine, Massachusetts and Rhode Island. Charter also owns properties in New York, Pennsylvania and Ohio.

According to sources, CBRE/NE handled both sides of the sale, procuring the buyer in addition to representing Shore’s children who have been operating the property, N. Barrie Shore and Marjorie Gilbert. The CBRE/NE team includes principals Christopher Angelone and William B. Moylan Jr., EVP James Koury, plus VP Nathaniel Heald and Senior Financial Analyst Josh Klimkiewicz.

The new owners of White City Shopping Center have plenty to work from, according to one broker familiar with the nine-building complex at 20-120 Boston Turnpike who says its denizens reflect that enduring appeal. Retailers occupying space there include Firestone, Friendlys, Mattress Giant, Panera Bread and The Paper Store. A 64,000-sf Shaw’s Supermarket is among more than three dozen tenants in the complex, many operating there for decades, and CBRE/NE cites in marketing materials a legacy of solid performance dating to the plaza’s opening when just 46,000 sf was available. There is now 255,000 sf of gross leasing area with an occupancy of 96 percent, plus another 24,500 sf of mezzanine and second floor space.

The 27-acre site is certainly well known to locals. White City Shopping Center opened in 1963 bordering Route 9 and Lake Quinsigamond, replacing the famous White City Amusement Park that had been there since the early 20th century. That venue was shuttered in 1960, but the location was quickly reborn as a favored retail destination, feeding off a traffic count today exceeding 60,000 vehicles. Anchored by Shrewsbury’s population of 30,000, the site has a demographic of 209,000 in a five-mile radius, and accommodates another 23,000 employees at the nearby University of Massachusetts Medical School, UMass Memorial Hospital and Biomedical Research Park.