BOWIE, MD-The recent trade of a retail center here, Collington Plaza, represents interesting pivotal points for both buyer and seller.
The buyer is Phillips Edison-ARC Shopping Center REIT and its acquisition of Collington has helped to bring its portfolio to the $1 billion mark. The sellers is Next Realty and the sale of the fully-leased grocery-anchored property represents a well-executed value add play for the firm. It is currently searching for similar opportunities in the Mid-Atlantic.
As GlobeSt.com reported yesterday, Phillips Edison-ARC Shopping Center REIT acquired Collington Plaza and two other grocery-anchored centers in rapid succession. Golden Town Center in Golden, CO, and Northstar Marketplace in Ramsey, MN, were the other two purchases. Michael Gorsage at HR Retail brokered the sale of the Collington Plaza.
These acquisitions bring the total number of properties acquired by Phillips Edison–ARC Shopping Center REIT in the fourth quarter to 14. All together the REIT now has a portfolio with 72 shopping centers anchored by 27 leading grocers in 21 states.
Collington Plaza, located at 3500 Crain Highway, is a 121,915-square-foot shopping center anchored by a 64,885-square-foot Giant grocery store—and the first Giant-anchored property in the company's portfolio. Other national tenants at the fully-leased retail center include Capital One Bank, Sally Beauty, Game Stop, GNC, and The UPS Store.
As for Next Realty, it is on the prowl for purchases, as it sells off its Bowie holding for rebalancing purposes. George Galloway, principal with Next Realty Mid-Atlantic, says the company is looing for assets that have a value add element anywhere in the Mid-Atlantic states.
Collington was a value-add play for Next Realty, Galloway says. "We purchased the property just before the market slowed dramatically in 2008, and we are proud that we were able to secure several retailers that were notably absent from this market, including national tenants and restaurants," he says in a prepared statement. "Today Collington Plaza is a compelling asset."
Galloway notes that the company has two mid-sized equity funds and is in search of retail and parking properties in great locations. "We will invest anywhere from Hampton Roads to Philadelphia."
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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.
