Rothenberg-Rosenfield Spends $15M on Roswell Retail

ATLANTA-As it expands its retail horizons on the Southeast, Rothenberg-Rosenfield has snapped up Phase II of Centennial Village, a neighborhood shopping center in the Atlanta suburb of Roswell. Rothenberg-Rosenfeld paid $14.6 million for the retail asset.

Located on State Route 140, the 117,392-square-foot shopping center is home to Kohl’s, PETCO, Rite Aid and additional small retail tenants and restaurants. With the closing, Rothenberg-Rosenfield becomes the sole owner of Centennial Village, a 213,268-square-foot retail destination.

“We acquired Centennial Village II because it was an opportunity to strengthen our existing asset, Centennial Village I, a Kroger-anchored shopping center adjacent to the property,” Josh Rosenfield, director of Property Acquisitions at Rothenberg-Rosenfield, tells GlobeSt.com. “Together, Centennial I and II create a prominent presence in this prime retail corridor. Combined ownership affords strategic positioning within the marketplace and more control as a cohesive destination.”

Centennial Village is in the heart of the Holcomb Bridge commercial corridor. The densely populated consumer base boasts an average annual household income of more than $130,000 within one mile of the shopping center. Trade area statistics within a three-mile radius add to the appeal with more than 28,000 households representing a population of 81,000 residents with an average annual household income surpassing $134,000, according to the firm’s demographics research.

“We have already established a comprehensive marketing plan, inclusive of both properties, in an effort to increase occupancy with the ideal tenants,” Rosenfield says. “We are implementing a landscape and signage program that will create a more fluid shopping experience between Centennial I and II.”

Even as it adds value to its latest acquisition, which is 94% leased, Rothenberg-Rosenfield has its eyes on similar properties in the Atlanta market. The firm’s aggressive investment criteria includes well-positioned, grocery-anchored shopping centers in strong primary markets. But Rosenfield admits there are challenges to executing on the strategy, namely supply and demand.

“There is a relatively low supply of quality, grocery-anchored assets on the market that cannot fulfill the extremely high demand, which is compressing cap rates to pre-recession levels,” he explains. “This challenge has been created by a ‘flight to quality’ by both buyers and owners which creates a very competitive marketplace.”

Rosenfield notes that owners are reluctant to sell when they cannot reap the same level of returns they see with current properties. What’s more, he notes, many institutional investors that can tap lower costs of capital are bidding on these types of assets alongside the traditional buyers. These combined challenges generate an ultra competitive environment that stretches the risk tolerance level.

“We will overcome these challenges by being patient and pursuing select opportunities that align with our acquisition criteria,” Rosenfield says. “Also, we capitalize on opportunities that many investors avoid such as loan assumptions, especially those with upcoming loan maturities. Our real estate expertise and nimble nature allows us to pursue unique deals.”