Fairfax County Retail Center Commands $200M
The deal is being conducted in two phases. Federal Realty closed on the $100 million first phase of the acquisition this week, and will finish with a matching $100 million in July.
Located in Fairfax County, the centers boast 61 tenants, including grocery anchors Safeway and Giant, national retailers T.J. Maxx, Ross and HomeGoods, and fast-casual concepts &pizza and Cava. The property is currently 97 percent leased.
“The acquisitions of the Kingstowne development and adjacent property support our Northern Virginia growth strategy and illustrate our commitment to creating communities which offer excellent retail and dining options, convenience and transportation accessibility,” Deirdre M. Johnson, Federal Realty’s senior vice president of asset management, told Commercial Observer. “We look forward to bringing an elevated experience to the local community and significantly expanding our presence in this thriving market.”
The Halle Companies developed Kingstowne in the mid-1980s, converting 1,200 acres into Northern Virginia’s second-largest master-planned community.
Federal Realty expects to increase the property’s value over time through remerchandising and incremental capital investment, Johnson said.
Avison Young’s Dean Sands and Chip Ryan, principals in the firm’s U.S. capital markets group, represented the seller in the deal. The buyer was represented in-house.
“The deal was attractive given the infill location and the ability to acquire two grocery-anchored centers in a single transaction,” Sands told Commercial Observer. “There was significant interest in the assets and the process was highly competitive.”
The sale did not include the Regal Kingstowne multiplex, owned by an affiliate of Boston Properties.
Requests for comment from both sides of the deal were not immediately returned.
Keith Loria can be reached at Kloria@commercialobserver.com.