Other tenants include Starbucks, Radio Shack, Advance Auto and Staples. The property also includes approximately 80,000 sf of small shop space and two pad sites.
This is Federal Realty's second acquisition in the Charlottesville market. The firm also owns Barracks Road Shopping Center, an open-air retail center located just two miles south of Shoppers' World. One of the main shopping centers in the city, Barracks Road is synergist with the Shoppers' World play, Andrew Blocher, SVP of capital markets and investor relations, tells GlobeSt.com.
Barry Carty, Federal Realty's director of acquisitions, tells GlobeSt.com there are opportunities to reposition the property as some leases are coming up for renewal. "We can capture upside relative to in-place rents, which we think are well below market rates."
Redevelopment is another strategy the firm is considering, he adds. "We looked at this acquisition on an 'as is' basis, with the potential upside being a redevelopment or releasing strategy."
Indeed the Shoppers' World trade is a reflection of the type of product Federal Realty has been steadily acquiring over the course of the past 18 months. According to Jeff Berkes, EVP and chief investment officer for Federal Realty, the firm has acquired nearly $580 million of assets, several of which were sourced off-market, and $95 million in acquisitions for its joint venture with Clarion Lion Properties Fund.
"These acquisitions provide the Trust with significant re-leasing and redevelopment opportunities as well as enhance Federal Realty's regional concentration in our core markets," he says in a statement.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
