CHARLOTTE, NC—CVS has inked a long-term ground lease for a new 13,000-square-foot stand-alone retail store on a vacant outparcel. The CVS will take up space at Rams Plaza, a 113,000-square-foot grocery anchored shopping center in Chapel Hill, NC.

The Kalikow Group, through a joint venture entity known as Rams Plaza Associates, LLC, is constructing the retail asset. When Ram Plaza Associates acquired the 30-year-old shopping center in Dec. 2011, it announced renovation plans.

In March, the owners completed phase one of the renovations, which included $1.5 million in upgrades to the façade, building structures, interior courtyard and parking areas. The new CVS lease marks the beginning of the second phase of a $3 million renovation plan.

Edward Kalikow, president and CEO of Kalikow, tells GlobeSt.com the CVS deal allows his firm to complete redevelopment of this shopping center. “Tenant retention remains very high in the area, which has significant barriers to entry, and we are gratified that CVS has chosen to expand at the new Rams Plaza.”

Rams Plaza is currently 95% occupied and anchored by Food Lion. CVS has been a long-time junior anchor of the shopping center, currently occupying 8,500 square feet of inline space. The retailer will continue to occupy its current location until the new stand-alone store is completed.

Located just off Highway 15/501 in Chapel Hill, the most prestigious submarket of the Raleigh Durham MSA, the shopping center is a few minutes away from the University of North Carolina-Chapel Hill campus, with over 30,000 students, staff and faculty.

Argus Development Group, a joint venture partner in the acquisition through its Argus Rams Plaza, LLC subsidiary, handled the approval process, renovations and management of the property. Argus Development Group is co-marketing the property with Retail Strategies, leasing agent for Rams Plaza. Breakers Capital Partners, a Florida limited liability, is the third member of the joint venture acquisition team.

Rams Plaza is located in one of the few commercial centers in Chapel Hill, at an intersection with strong traffic counts and good visibility. The scarcity of vacancies in the overall market speaks to the success that most retailers experience. The area is home to not only the University of North Carolina, but its affiliated hospitals and the headquarters of Blue Cross Blue Shield of North Carolina.

The Rams Plaza is located in an area with 58,000 permanent residents located within a three-mile radius, 73% of whom are college graduates, well above the national average of 27%. The average household income in the area is $84,600, well over the national average of $70,173.

Instant Insights /

CVS Inks Outparcel Net Lease in Triangle

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