Dam Neck Crossing was built in 1990. Besides K-Mart, there are also 35,000 sf of shop space with such national tenants as Curves for Women, Altel, H&R Block, Supercuts, Radio Shack and Quizno's. The Big K-Mart is currently paying below market rent, Thomas says. "That is one reason why the buyer wanted it," she tells GlobeSt.com. Meanwhile the shop rents have been steadily rising, to reach between $16.50 and $18.50 per sf. All together the shopping center is 98% occupied.

Thomas says few assets like this come onto the market in Virginia Beach. "It's a very strong retail market for that reason. In general, the community has grown substantially over the last few years but there are substantial barriers to entry for retail because it is a resort community."

There was a lot of interest in the property when it came onto the market, she adds. The seller, which is a local partnership, had been conflicted for some time as to whether it should even put the asset onto the market. One of the owners had wanted to, Thomas explains, while the other didn't. Eventually the partnership decided the time was right to sell.