The San Diego-based REIT has purchased Dulles Town Crossing from previous owner AIG Baker Inc. using a combination of cash and a new $49.5-million, 10-year, 5.88% fixed-rate mortgage. Completed in 2000, the open-air shopping center stands on a 103-acre parcel in Sterling. Encompassing 740,000 sf, it is 99% occupied. Approximately 81% of the total center is leased by national tenants including Lowe's Home Improvement Center, Sam's Club, Wal-Mart, T.J. Maxx, Bed Bath & Beyond, Best Buy, Cost Plus, Ethan Allen, Dick's Sporting Goods and Nordstrom Rack. Dulles Town Crossing is part of a two-property portfolio purchase by Price Legacy. The other property, Cherrydale Point, was previously acquired in June 2002. The REIT paid nearly $30 million for that 400,000-sf retail complex located in Greenville, SC.

The acquisition of Dulles Town Crossing reflects Price Legacy's continuing strategy to focus on open-air retail product, especially big-box community centers. "We feel that's a market we understand well and so that's where we want to be," Graham R. Bullick tells Globest.com. Bullick, who is Price Legacy's president and COO, explains that the REIT primarily seeks out community centers that are located in dense areas with good household incomes. And when it comes to tenant rosters the company targets properties that have at least 70% national retailers. These factors ensure "predictability and reliability for the income stream," Bullick explains.

As Price Legacy increases its focus on open-air retail product, it is beginning to shed its non-core assets, such as the two California self-storage properties that have been sold for a combined $46 million. The properties, which have been acquired by Price Self Storage, are located in Solana Beach and San Diego. Thus far, Price Legacy has sold around $152 million of non-core properties.