SILVER SPRING, MD—A source tells us that Rappaport Co. has acquired WesTech Village Corner, a 41,261 square foot retail center, for $27.9 million, or $676 per square foot.
The property, located on Tech Road in Silver Spring, is fully occupied by such tenants as Capital One Bank, Panera Bread, TGI Fridays and Chic-Fil-A., according to marketing materials by CBRE.
Built in 2007 the center consists of two buildings. Crow Holdings was the seller, having acquired it in March 2012 for $23.3 million.
CBRE positioned the center as a strong income-producing asset. It cited the "exceptional tenant performance" Panera Bread, IHOP and TGI Friday's, which all demonstrate strong sales. The retail center is also adjacent to the Hilton Garden Inn of Silver Spring, which drives a lot of traffic.
Retail, in general, is doing well in the area as illustrated by a number of factors: 3,700 retail jobs were added during the 12 months ending August 2014 on a net basis, Delta Associates reports. Also, vacancy rates for neighborhood and community centers in Suburban Maryland are 8.3%, respectively, a decline of 10 basis points for the third quarter of 2014. In addition, neighborhood and community center effective rents rose 1.1%, for the quarter, to $22.91 per square foot.
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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.
