MANASSAS, VA–For some reason, having an unusual grocery store to anchor a shopping center has become all the rage.
Bethesda-based Finmarc Management has acquired the Festival at Manassas, a 117,000-square foot neighborhood shopping center for $20 million. The property, which is located at 10280-10388 Festival Lane, is anchored by Global Food and is 97% leased.
The seller is Katz Properties, which was represented by Bill Kent of CBRE.
Global Food is a grocery store specializing in Asian and other international
food products.
“In a lot of ways it flies under the radar of grocery stores that compete with each other,” Finmarc VP Sean Sullivan tells GlobeSt.com. “This is a local operator — he owns five locations in the area and has good, healthy sales.”
Global Food has attracted its own following, Sullivan says. “I think they will continue to be there despite the grocery battles that are now going on.”
The Suddenly Active Grocery Store Market
The normally staid grocery store market is experiencing a lot of new activity lately. German grocery discounters Lidl and Aldi are entering the US with their eye on establishing a wide footprint, while in the Mid-Atlantic Wegmans is expanding.
And of course, last week's announcement that Amazon was acquiring Whole Foods shocked the grocery-store industry to its core. Indeed, the deal promises to remake national food sourcing and distribution trends if Amazon decides to apply itself in this manner.
Read What Is It About Wegmans' Buzz?
On top of all this, a case can be made that the grocery-store sector is over-retailed along with its traditional retail counterpart — especially when you take into account the non-traditional stores that have begun selling food, such as the Dollar stores, the grab-and-go options at drugstores, and Target. Also, retailers such as Wal-Mart have been increasing the quality of their grocery store offerings, such as its organic produce.
Finmarc's Footprint
Sullivan called the transaction an opportunistic, stable cash flow deal.
With this acquisition, Finmarc currently owns and manages 92 office, flex, industrial and retail properties as well as several residential projects in the Mid-Atlantic area, totaling 6.7 million square feet of space.
MANASSAS, VA–For some reason, having an unusual grocery store to anchor a shopping center has become all the rage.
Bethesda-based Finmarc Management has acquired the Festival at Manassas, a 117,000-square foot neighborhood shopping center for $20 million. The property, which is located at 10280-10388 Festival Lane, is anchored by Global Food and is 97% leased.
The seller is Katz Properties, which was represented by Bill Kent of CBRE.
Global Food is a grocery store specializing in Asian and other international
food products.
“In a lot of ways it flies under the radar of grocery stores that compete with each other,” Finmarc VP Sean Sullivan tells GlobeSt.com. “This is a local operator — he owns five locations in the area and has good, healthy sales.”
Global Food has attracted its own following, Sullivan says. “I think they will continue to be there despite the grocery battles that are now going on.”
The Suddenly Active Grocery Store Market
The normally staid grocery store market is experiencing a lot of new activity lately. German grocery discounters Lidl and Aldi are entering the US with their eye on establishing a wide footprint, while in the Mid-Atlantic Wegmans is expanding.
And of course, last week's announcement that Amazon was acquiring Whole Foods shocked the grocery-store industry to its core. Indeed, the deal promises to remake national food sourcing and distribution trends if Amazon decides to apply itself in this manner.
Read What Is It About Wegmans' Buzz?
On top of all this, a case can be made that the grocery-store sector is over-retailed along with its traditional retail counterpart — especially when you take into account the non-traditional stores that have begun selling food, such as the Dollar stores, the grab-and-go options at drugstores, and Target. Also, retailers such as
Finmarc's Footprint
Sullivan called the transaction an opportunistic, stable cash flow deal.
With this acquisition, Finmarc currently owns and manages 92 office, flex, industrial and retail properties as well as several residential projects in the Mid-Atlantic area, totaling 6.7 million square feet of space.
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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.
