GAITHERSBURG, MD—Retail Properties of America, a REIT based in Oakbrook, IL, has acquired the retail portion of a mixed-use community that recently delivered from JBG Cos and JBGR Retail for $162.8 million.
The commercial core of the 180-acre Crown community is called Downtown Crown and its retail portion consists of approximately 258,000 square feet, including a neighborhood center component anchored by Harris Teeter. There is also a lifestyle center component anchored by various restaurants including Coastal Flats, Ted's Montana Grill, Old Town Pour House and Ruth's Chris Steakhouse. The property opened in phases starting in the fourth quarter of 2013 and is currently 62.7% occupied and 77.5% leased.
When the project is fully delivered there will also be more than 2,200 residential units.
The acquisition expands the REIT's already considerable 2.6 million square foot plus footprint in the metro Washington DC area.
The acquisition will " allow us to utilize our robust regional operating platform to complete and optimize the merchandise mix at the property," Shane Garrison, executive vice president, chief investment officer and chief operating officer of the REIT, says in a prepared statement. "This acquisition augments our significant footprint in the Washington, D.C. market and will." Downtown Crown's attributes include high barriers to entry, significant household density and income, and a strong mix of retail, service and restaurant tenants, he added.
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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.
