(For more retail coverage, click GlobeSt.com/RETAIL.)
SEEKONK, MA-In its first foray into the Massachusetts market, Tarrytown, NY-based DLC Management Corp. has acquired the 101,782-sf Namco Plaza here in a deal that gives the shopping plaza owner its sixth retail asset in New England.
"Massachusetts is a very tough nut to crack," Adam Ifshin, president of DLC, tells GlobeSt.com, noting that the state's high real estate values combined with a lack of product on the market, has made the Bay State one of the tightest markets in the country.
Ifshin says the firm acquired the property from a private seller for about $80 per sf, about 50% below its estimated replacement cost, and plans to invest about $800,000 to upgrade the asset and re-tenant the Route 6 shopping plaza. The center is currently almost 80% occupied by a strong mix of national, regional and local tenants including Outback Steakhouse, Sherwin Williams, Dollar Tree and Tuesday Morning.
The shopping center was a good pick for DLC Management, Ifshin says, because it met the firm's criteria of acquiring good assets in dense retail markets.
"It's more about rooftops than affluence," he notes, adding that the area has 57,227 households within a five-mile radius, with an average household income of $47,756 and a traffic count of over 20,600 vehicles per day. "We like older suburbs that are fundamentally supply constrained and tend to have a lot of people in them and we think this fits that bill perfectly," he adds.
The acquisition of Namco Plaza, expands DLC Management's New England footprint to six shopping centers, for a total of more than 900,000 sf. The firm currently owns four properties in Connecticut and one in Rhode Island and has holdings totaling 11 million sf in 18 other states. This year alone, the firm has acquired eight shopping centers, totaling more than two million sf, with 12 additional shopping centers under contract in separate transactions scheduled to close by Oct. 31.
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