Cambridge, MA Newmark has secured the $20.1 million sale of Porter Square Galleria, a Target-anchored urban retail asset. Newmark co-head of U.S. Capital Markets Robert Griffin and managing directors Jonathan Martin and Paul Penman of the Boston Capital Markets group’s retail practice represented the undisclosed seller and procured the buyer, Crosspoint Associates. Additionally, Newmark vice chairman David Douvadjian, Sr., executive managing director Timothy O’Donnell, senior managing director David Douvadjian, Jr. and associate director Conor Reenstierna of the Boston Debt & Structured Finance group arranged financing on behalf of the buyer.
Totaling 55,610 s/f, Porter Square Galleria is 96% leased to six tenants. The property is anchored by a 28,893 s/f Target and complemented by necessity-based retailers including One Medical, Anna’s Taqueria and Citizens Bank.
“Greater Boston enjoys one of the country’s lowest retail vacancy rates and its leasing spreads continue to impress investors. Buyer interest in urban retail within core Boston-area markets has been robust during the first half of 2024 and we expect the trend will continue through the second half of the year,” said Martin.
“Local retail fundamentals continue to be stronger than ever, driven by the lack of available quality space as well as the strong performance of retailers themselves. Furthermore, the area’s high cost of new construction continues to drive investor demand to existing assets that can be acquired at an attractive discount to replacement cost. We expect capital flows into Greater Boston’s retail asset class will continue to grow in diversity of sponsorship as well as size and scale,” said Penman.
Porter Square Galleria is located across from the MBTA’s Porter station, a transit hub that is served by the subway (Red Line) and commuter rail (Fitchburg Line). The property also benefits from 88 on-site parking spaces, the majority of which are situated within a two-level structured parking garage.
Newmark senior financial analyst Casey O’Brien provided financial analysis support for the transaction.
