NORTH COVENTRY TWP, PA — Houston-based Sky Capital Group acquired Town Square Plaza, a Lowe’s-anchored shopping center in Chester County, for $22.6 million, approximately 21% below its previous sale price, as the investor seeks to increase occupancy and reposition the partially vacant retail property, according to the Philadelphia Business Journal.
The 216,000-square-foot shopping center at 1100 Town Square Road was sold by Long Island-based Bluejay Management, which purchased the property for $28.6 million in 2017.
The transaction represents a $6 million decline in the property’s sale price over nine years, with the valuation falling to approximately $105 per square foot from $132 per square foot in the earlier transaction.
Town Square Plaza occupies approximately 38 acres along Route 100, about one mile south of Route 422. The property is located in North Coventry Township, Chester County, despite its Pottstown mailing address.
The shopping center is approximately 87% occupied, leaving about 13% of its leasable space vacant.
Lowe’s is the dominant tenant, occupying approximately 134,500 square feet, or more than 62% of the property’s reported building area.
Other tenants include PetSmart, LongHorn Steakhouse, AutoZone and AT&T.
The center has also experienced tenant departures, including the closures of Mattress Firm and Golf U, creating vacancies that Sky Capital intends to address through additional leasing.
Sky Capital principal Ben Medetsky told the Philadelphia Business Journal that the company views Town Square Plaza as an established retail property with a combination of national and local tenants.
The acquisition strategy centers on filling vacant storefronts and improving the tenant mix, potentially increasing the property’s occupancy and rental income.
The purchase extends Sky Capital’s investment activity in established suburban retail centers. During the previous winter, the company acquired four grocery-anchored shopping centers in western New York for a combined $30 million.
Town Square Plaza’s sale comes amid a series of shopping-center transactions across the Philadelphia region, where investors have acquired properties with national retailers and opportunities for additional leasing.
Recent transactions cited by the Business Journal include a Wegmans shadow-anchored retail property in Yardley that sold for $39 million, equivalent to approximately $693 per square foot.
Marketplace at Huntingdon Valley sold to a Boston investment group for $60 million, or approximately $233 per square foot.
A Montgomeryville shopping center anchored by Home Depot and Sprouts Farmers Market changed hands for $50 million, or approximately $183 per square foot.
In Chester County, Clemens Development recently acquired Mill Town Square in Downingtown for approximately $22 million, or $215 per square foot.
Town Square Plaza’s $105-per-square-foot sale price was substantially below those transactions, reflecting a different valuation for the North Coventry property.
The comparison underscores the variation in pricing across suburban retail assets, where occupancy, tenant composition and individual property characteristics can affect investment values.
For Sky Capital, the acquisition provides an established retail center anchored by a national home improvement chain, along with vacant space available for additional tenants.
The ownership change also creates an opportunity to alter the commercial mix at one of North Coventry Township’s principal shopping destinations.
For additional reporting on the transaction and Sky Capital’s acquisition strategy, read the original article in the Philadelphia Business Journal at https://www.bizjournals.com/philadelphia/news/2026/11/02/town-square-plaza-sold-sky-capital-group-bluejay.html.
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