NORTH BETHESDA, MD-Saul Centers has acquired a 20,149-square-foot retail center on Rockville Pike. The building, which houses Staples and Casual Male traded for $15.05 million in cash. JBG Rosenfeld Retail was the seller. HFF’s Jim Meisel and Dek Potts brokered the sale.
The property, located between the White Flint Mall and White Flint Metrorail Station, is situated within the White Flint Sector Plan redevelopment area. Now that the sector plan has been approved and density increased to a 4.0 floor area ratio from a 2.0 FAR, the new owner has an additional 315,000 square feet of development potential, Potts tells GlobeSt.com.
It is a smart way for it to position itself for the market when it turns back to development, Potts says. Right now, the buyer is getting a 6.5% return from the Staples credit while waiting to see how the development market will shake out.
When it does start to ramp up, Potts says a metric that will become increasingly in use will be price per FRA. In this case, Saul Centers paid $47.78 per FRA, a number derived dividing the 315,000-square-foot development potential by the $15.05 million price.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
