Sales  ·  Mixed Use

Kimco Realty Pays $173M for Stonebridge at Potomac Town Center

The company looks to expand the center with retail and multifamily

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Kimco Realty has acquired Stonebridge at Potomac Town Center, a 504,000-square-foot grocery-anchored retail and residential complex in Woodbridge, Va., for $172.5 million.

The center was built by Washington, D.C.’s Roadside Development in 2007 and acquired by The JBG Companies in 2015 for $225 million, before it merged with Vornado Realty Trust to become JBG Smith in 2017.

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Stonebridge, which was 96 percent occupied at the time of the sale, is anchored by a 138,500-square-foot Wegmans and has a tenant roster that includes Apple, REI, Ulta Beauty, Starbucks, Cava and Firebirds Wood Fired Grill. It also has a 308-unit apartment building.

One appeal of the acquisition was that the center presents a variety of growth prospects, including the potential to develop three outparcel retail buildings, increase density through mixed-use development, and enhance the existing merchandising mix through the recapture of below-market leases, according to Ross Cooper, Kimco’s president and chief investment officer.

“We’re excited to add this premiere grocery-anchored center situated in a high barrier to entry location with strong demographics to our dynamic portfolio,” Cooper said in a prepared statement. “This center boasts a robust growth profile that will complement and solidify Kimco’s position as a leading retail player in the suburban Washington, D.C., market.”

Roughly 230,000 people with an average household income of $125,000 live within five miles of Stonebridge at Potomac Town Center, according to Kimco.

It was unclear who the brokers were in the deal.

Keith Loria can be reached at Kloria@commercialobserver.com