Two New Construction Anchor Box Brands Sell for $35.3M via Atlantic Capital

Springfield — Atlantic Capital Partners has brokered the $35.3 million sale of the newly constructed BJ’s Wholesale Club and Hobby Lobby properties at Springfield Crossing.

The two major retail spaces total 159,344 square feet and are located along Boston Road, one of Western Massachusetts’ busiest commercial corridors. The development introduces a large-scale, open-air shopping center format to the local Springfield retail market.

The transaction was led by Justin Smith, Head of Capital Markets; Chris Peterson, Executive Vice President; Danielle Turpin, Senior Associate; Matt Ericson, Associate; and Matt Austin, Senior Analyst. Atlantic Capital exclusively represented the seller and procured the buyer in the transaction.

“This transaction represents a rare opportunity to acquire a newly developed, institutional-quality retail asset with long-term cash-flow stability and strong credit tenancy,” said Justin Smith, Head of Capital Markets at Atlantic Capital Partners. “The execution of leases with high-profile tenancy before the completion of construction underscores the strength of the Boston Road retail corridor and national tenants looking to establish a presence in Western Massachusetts.”

Leased to BJ’s Wholesale Club and Hobby Lobby, the asset is co-tenanted by a best-in-class roster of national retailers including PetSmart, La-Z-Boy, Chick-fil-A, Chipotle, Chase Bank, Skechers, and Carter’s in the remainder of the development. Springfield Crossing, the broader development, is 99% leased or committed across 228,756 square feet, delivering a near-stabilized asset at the outset of its operating life. This execution covered the center’s two major anchor spaces.

According to a release, the property represents one of New England’s most significant retail redevelopment stories: a $147 million transformation of the former Eastfield Mall into a modern, open-air shopping destination anchored by durable, high-traffic brands and complemented by regional daily-needs and dining concepts designed to become a hub for the region’s more than 600,000 residents.

“Transforming this site into a premier open-air shopping center required strong leasing execution. The tenant mix across the development has established Springfield Crossing as the primary retail hub for the submarket,” added Matt Ericson, Associate at Atlantic Capital Partners. “The sale of BJ’s and Hobby Lobby highlighted significant institutional interest in new-construction anchor box assets and the desirability of this trade area.”