Safeway-Anchored Brandywine Shopping Center Trades for $64M
First National Realty Partners (FNRP) has acquired Brandywine Crossing, a 231,000-square-foot shopping center in the Washington, D.C., suburb of Brandywine, Md.
The outdoor shopping center traded for $64 million, according to a source with knowledge of the deal.
The seller was a joint venture between Velocis and Katz Properties, which acquired the open-air center in 2018.
Seven Hills Realty Trust facilitated a $42.5 million floating-rate bridge loan for the transaction. The loan is structured with a three-year initial term and two one-year extension options, according to the financier.
The shopping center, anchored by a 60,000-square-foot Safeway, is located at 15802 Crain Highway, and marks FNRP’s first entry into the Maryland market.
“We target grocery-anchored essential retail assets exclusively, and Brandywine Crossing fits that profile beautifully,” Kurt Padavano, COO of FNRP, told Commercial Observer. “This product type provides a durability that enables it to weather economic changes more than almost any other asset class. Within that context, we look for opportunities where there is a delta between current and potential value.”
In the case of Brandywine, that upside presents 15,000 square feet of available space, which he noted provides significant potential by way of increased occupancy and cash flow.
“By re-tenanting, we’ll be investing dollars to renovate and upgrade and plan on investing capital to attract premier tenants,” Padavano said. “We are continually venturing into new markets with the intent to establish a presence that we can grow, and Brandywine provides an excellent foothold in Prince George’s County.”
In addition to Safeway, tenants at Brandywine Crossing include Marshalls, Advance Auto Parts, Starbucks, Wells Fargo and The UPS Store.
First National Realty Partners research shows that 108,000 vehicles pass by the center each day, and more than 61,000 people, with an average household income of $115,000, live within a five-mile radius of the property.
Jordan Lex and Daniel Naughton of JLL represented the seller in the deal. The buyer was represented in-house.
Requests for comment from the sellers and the brokers were not immediately returned.
Keith Loria can be reached at Kloria@commercialobserver.com.