Rare Credit Retail Portfolio Goes to Market

BALTIMORE-A 168,000 square foot credit retail portfolio located in Baltimore's White Marsh and Parkville submarkets has been placed on the market. The size of the portfolio – and the fact that it consists of retail assets as opposed to industrial – make it a rare find for investors in the net lease space, says Greysteel Co. broker Gil Neuman. "It is definitely an unusual size for the Baltimore market," he tells GlobeSt.com.

The portfolio consists of three retail properties. Greysteel is representing developer/owner Heritage Properties, Inc.

The portfolio includes:

• BJ's Wholesale Club at 4201 Wholesale Club Dr. in White Marsh. It is a single-tenant net-leased 117,354 square foot property on 17.75 acres outside the I-695 Baltimore Beltway. BJ's recently signed a 15-year corporate lease renewal and invested $1 million in store upgrades following 20 years of occupancy.

• White Marsh Retail Center at 4111-4121 Wholesale Club Dr., also in White Marsh. It is a 11,400 square foot center shadow-anchored by BJ's Wholesale Club and 83% occupied by long-term triple-net tenants including national Arby's Restaurant and Leslie's Swimming Pool Supplies.

• Joppa-Perring Retail Center at 1917-1925 East Joppa Rd, in Parkville. It is a fully-occupied two-tenant renovated center on 4.11 acres. Savers Thrift Superstore occupies the main 39,491 square foot building under a ten-year corporate net lease with five-year renewal option. Checker's Drive-In restaurant fronts East Joppa Road.

Neuman says the portfolio is unofficially "unpriced" adding he expects to trade competitively, given the demand for such assets in the market. "That this portfolio is on the market now speaks to the high demand environment we are currently seeing and relatively low interest rates that, despite the recent spike, are keeping cap rates low.

The properties can trade as a portfolio or separately.