Northern Virginia Shopping Centers Sell for $53M
The seller was Interstate Management, which developed all four centers in the early ’70s. The four properties, which span a combined 470,000 square feet across 70 acres, are all less than three miles apart in the greater Woodbridge area.
“Retail, and specifically neighborhood centers with necessity retail — those items you need every day — are a favored asset class coming out of COVID,” Gary Schlager, a principal from Rock Creek, told Commercial Observer by email. “Plus, these centers are under-leased and under-renovated, meaning we can add significant value.”
The portfolio consists of the 108,000-square-foot Center Plaza at 4385 Dale Boulevard; the 170,000-square-foot Mapledale Plaza at 5381–5513 Mapledale Plaza; the 101,000-square-foot Forestdale Plaza at 4136 Dale Boulevard; and the 91,000-square-foot Glendale Plaza at 10851 Lanham Severn Road.
Combined, the shopping centers were 90 percent occupied at the time of the sale.
The joint venture announced it will upgrade the centers from Class C to Class B with a planned multimillion-dollar renovation that will begin at the beginning of 2024.
MV+A Architects was enlisted for the renovations, which will include new paint and façade improvements, public gathering points, revamped parking lots, and security improvements such as enhanced lighting and pedestrian-friendly pathways.
“Rock Creek’s strategy is value-add and opportunistic-driven, and this portfolio meets that goal precisely,” Schlager said. “In addition, the portfolio includes 14 acres of excess ground that we will work to entitle and develop/construct for commercial or residential use/uses.”
Retail brokerage KLNB will handle retail leasing for the four properties.
Combined, more than 100,000 vehicles per day pass the four centers, and they sit within a three-mile radius of a population of more than 120,000 people with an average household income of $150,000, according to KLNB.
Ideal Realty Group was the lone broker in the sale, handling negotiations for both sides.
Keith Loria can be reached at Kloria@commercialobserver.com.