Rappaport Companies has acquired Town Center at Sterling, a 188,109-square-foot grocery-anchored retail property in Sterling, Va. from a joint venture between Regency Center and First Washington Realty, Commercial Observer has learned.
City records show the property, located at 21800 Towncenter Plaza, traded for around $35 million. The center has been anchored by Giant Food since the early 1970s, and the grocer recently renovated its space and executed a long-term extension on its lease, according to Mat Adler, a managing director at Newmark Knight Frank, who represented the seller in the transaction.
“Ownership felt that the timing was ideal due to Giant’s long-term extension coupled with a lack of supply on the market,” Adler told CO. “Recent trends show new entrants into the retail buyer pool; investors are increasingly looking to retail as an opportunity, given the dislocation in pricing and risk profile compared to other asset classes.”
The property’s tenant roster also includes Capital One Bank, Verizon Wireless and Planet Fitness.
“This was a unique opportunity to acquire a grocery-anchored center directly off Leesburg Pike in a location that straddles two of the wealthiest counties in the country: Loudoun and Fairfax,” Adler said.
Joining Adler on the deal were NKF’s Geoffrey Millerd and Chris Huesgen. Joe Donato, NKF’s Mid-Atlantic region debt and structured finance team, facilitated financing for the buyer.
The deal marked the fifth retail transaction the NKF team has facilitated in the past 60 days for a grand total of $127.5 million.