Urban Edge Properties Acquires $193M Retail Center Near DC
The REIT has acquired the 712,000-SF, 97%-leased, Woodmore Towne Centre in Glenarden, MD, as well as an adjacent 22-acre land parcel.
GLENARDEN, MD – New York-based REIT, Urban Edge Properties has acquired a 712,000-square-foot grocery-anchored, regional power center in Glenarden, MD, as well as an adjacent 22-acre land parcel.
The REIT purchased the properties for $193.4 million, which provides an initial unleveraged yield of 6.4%.
The acquired retail asset, Woodmore Towne Centre, is situated on 83 acres of land and is located off of the Capital Beltway, nine miles from the center of Washington D.C.
Woodmore Towne Centre has served as Maryland’s second-most visited open-air center over the past 12 months, with more than six million visitors. The property is currently 97% leased to various retailers, restaurants and services, including Wegmans, Costco, Best Buy, At Home, Nordstrom Rack, LA Fitness, Starbucks and more.
The retail center is situated within a larger 245-acre master-planned community, which encompasses more than 500 recently-constructed residences, a limited-service hotel and a new children’s medical center. The acquired adjacent 22 acres of land are additionally part of the master-planned community, and may be developed for commercial use in the future.
The acquisition aligns with Urban Edge Properties’ strategy to acquired high-quality, infill real estate with attractive cash flow and growth potential.
“Woodmore Towne Centre is a valuable addition to Urban Edge’s portfolio of high-quality retail assets located in premier metropolitan markets,” says Jeff Olson, chairman and CEO of Urban Edge Properties. “With best-in-class retailers, a convenient open-air format and outstanding accessibility, Woodmore is a go-to destination serving the needs of consumers across Prince George’s County. We look forward to partnering with the local community and further expanding our presence in the greater Washington D.C. marketplace as part of our long-term strategy.”
The company completed the transaction by using ash-on-hand and a new $117.2 million non-recourse first mortgage, secured by the property. The mortgage has a 10-year term at a fixed rate of 3.39% and is interest-only for the entire loan term.
The transaction closed on December 23, 2021.