PASADENA, MD—As value-add opportunities are getting more difficult to source one buyer is pushing hard at uncovering hidden gems off market. The result -- last month it acquired Pasadena Crossroads, a 319,519-square foot retail center close to Baltimore's Central Business District, for $31.6 milllion.

The property, located at 8070 Governor Ritchie Highway, has many attributes in its favor: it is fully leased and anchored by Shoppers Food Warehouse, Kmart and LA Fitness. The 28-acre property was originally developed in the 1970s and underwent a renovation in 2008.

The shopping center is also across the street from a new 120,000-square-foot Walmart that just opened – which might be more of a concern except that the income level in the area is relatively high: the average household income is approximately $90,000 within a three-mile radius of the property.

Still, whatever competition Walmart may provide is offset by the below-market rents the tenants are currently paying.

The seller, The Hampshire Cos., decided to take advantage of the favorable pricing in recent transactions and sell, according to Igor Derbaremdiker, Transactions Manager at The Hampshire Cos.

The buyer, Sterling Organization of Palm Beach, Fla., which acquired the property via the firm's institutional fund Sterling Value Add Partners II, plans to roll the rents to market rates. It also makes clear the advantages of sourcing deals off market.

"As good value-add investment prospects become harder to come by, our team continues to have success in uncovering off-market opportunities such as Pasadena Crossroads," Kosoy said.