Lancaster-based Shops @ Rockvale sold for $30.5 million

The Shops @ Rockvale in Lancaster County have sold for $30.5 million to Fernmoor Homes, Institutional Property Advisors (IPA) announced Friday. 

The Shops @ Rockvale are a regional outlet along Route 30 spanning 581,462 square feet on 63 acres in Southeastern Pennsylvania. More than 40 retailers make up the outlet, including Disney, Cracker Barrel, Olive Garden, Crate & Barrel Outlet, and Carter’s. Opportunities exist to lease the remaining retail spaces as Fernmoor Homes, the new owner, executes on the redevelopment opportunity adding a residential component. 

IPA is a division of Marcus & Millichap. Brad Nathanson, IPA senior managing director in Philadelphia, in conjunction with David Crotts, IPA director, and Dean Zang, IPA executive managing director in Washington, D.C. executed the transaction on behalf of the seller, Wharton Realty Group, and secured the buyer, Fernmoor Homes. 

“Major value-add opportunities like Rockvale are in tremendous demand with investors right now,” Nathanson said in a statement. “We are grateful for the opportunity from Wharton Realty Group, specifically Isaac Massry, who began paving the way for the evolution of this asset several years ago.” 

According to a press release announcing the sale, Fernmoor Homes plans to add 416 apartments in 13 four-story buildings by demolishing 265,198 square feet of commercial space in the shopping center to create a modern mixed-use community. The company anticipates submitting plans to East Lampeter Township in 2023 with the redevelopment of the property taking up to five years with an estimated price tag of $100 million. 

“We are excited to have helped facilitate this transaction in such a challenging debt environment,” said Crotts. “Congratulations to Wharton on the successful sale and to Fernmoor Homes for their purchase and exciting vision for the next chapter of Rockvale.”