Maryland Retail Center Commands $4.5M
Kohler Development Corporation has acquired Fairground Village Center, a 29,000-square-foot retail center in Westminster, Md., for $4.5 million.
Edge brokered the deal on behalf of the seller, Oxford Realty Advisors.
“The buyer was local to Carroll County and had a 1031 exchange,” Joe Friedman, Edge’s partner for capital markets, told Commercial Observer. “He owns other similar neighborhood retail property and has great experience working with mom-and-pop businesses.”
Additionally, the property had strong occupancy history and generated great cash flow, adding to the appeal, Friedman said.
“The service-oriented tenants have been able to sustain businesses throughout the pandemic as they provide services to the community, such as food, haircuts, medical marijuana, dog grooming, tattoos, chiropractic services, nail salon, baked goods, flowers, etc.,” he said.
Oxford Realty Advisors originally acquired the property in 2012, and listed it this January before COVID started.
The retail center is located at 330 140 Village Road, adjacent to MD Route 97, less than one mile from Maryland Route 140 and 2 miles from the main downtown shopping district in Westminster. It’s also about 20 minutes from Baltimore.
The property was 95 percent leased and occupied at the time of the transaction, with a tenant roster that included Jackson Hewitt Tax Service, The Cutting Garden Florist and Westminster Barber Shop.
“Westminster is an extremely stable submarket with growing demographics, and the new buyer acquired an excellently-maintained retail asset that will build value over the long-term,” Friedman said. “This sales transaction was challenging based on the strong retail headwinds caused by the pandemic, but the existing retailers showed tremendous resiliency and entrepreneurial spirit to weather the storm for several months. We were able to successfully conclude this sale in large part due to the patience of the buyer and the seller to consummate a deal.”
Joining Friedman on the deal in representing the seller was Edge Senior Director Crissy Kleine. The firm also procured the buyer.