Rappaport JV Buys Two Retail Centers in NoVa

MCLEAN, VA—The joint venture formed last year between Rappaport and Principal Real Estate Investors has acquired two grocery-anchored retail centers in Northern Virginia for an undisclosed price. The properties are the Dominion Valley Market Square in Haymarket, and South Riding Market Square in Chantilly.

Rappaport has managed both centers on behalf of Toll Brothers, which developed the local residential communities, for the past four years.

South Riding Market Square is a 266,591 square-foot center anchored by The Home Depot and Giant Food. Other tenants at the 99%-leased center include PetValu, GameStop, Hair Cuttery, and several restaurants. Dominion Valley Market Square is a 175,000 square-foot retail center, also anchored by Giant Food. Tenants include Subway, Hair Cuttery and SunTrust bank. Dominion Valley is also close to full occupancy with only few spaces available, ranging from 1,400 square feet to 3,600 square feet.

Rappaport partnered with Principal Real Estate Investors in 2013 to acquire retail assets throughout the Mid-Atlantic region. The partnership kicked off with the recapitalization of approximately one-million-square feet of retail space in four retail centers located in Northern Virginia. PRC assisted in setting up the venture. In a prepared statement, Henry Fonveille, president of Rappaport, says the JV is looking forward to acquiring more properties in 2014.

Under the JV, CEO Gary Rappaport and Fonvielle handle acquisitions of existing properties. COO Steve Pugh and CFO Frank Pieruccini handle operations and financing, respectively, and EVP Larry Spott handles new development land acquisitions.