page 1H&R RETAIL INVESTMENT PROPERTIES DIGEST [THIRD QUARTER 2015]

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Parkway Crossing sells for $27MParkway Crossing, a 260,000-sf Big Lots, ShopRite and Home Depot anchored shopping center located at 2331 Cleanleigh Drive in Baltimore County, MD, has traded hands between two real estate investment trusts. The 98% occupied center sold for $27.2 million.

The buyer is MCBH Parkway Crossing LLC, a joint venture of Baltimore’s MCB Real Estate and HUH US Real Estate Income REIT Inc., which is a fund managed by New Jersey-based Hampshire Real Estate Cos. The two acquired the center in a sale that closed July 31. The deal was brokered by Michael Gorsage and Kate Howarth of H&R Retail.

MCB Real Estate was not only part of the team that acquired the property, but it was also partners with a real estate fund of seller White Plains, NY-based Acadia Realty. Acadia and MCB bought the property for $20.3 million in 2011 when it was missing an anchor tenant, said David Bramble, managing partner with MCB Real Estate. The partners stabilized the property, bringing in ShopRite with a 55,000 sf lease, and sold it as a core property investment that MCB and Hampshire will likely hold on to for the long haul, Bramble said.The 1960s-era shopping center was renovated in 1996.

Permit issued for Clarksburg Outlet MallSimon Property Company and its joint venture partners hold in their hands a permit to build a new outlet mall in Clarksburg. The $41 million permit was issued earlier this month, following the $30.7 million acquisition by Simon, Streetscape Partners and New England Development of 79 acres on Route 121 at I-270.

UBS Realty is Towne Centre BuyerBut for the multi-family site, all of the Laurel Towne Centre now belongs to a partnership headed by UBS Realty Investors. The Connecticut institutional buyer paid $132.8 million for the Laurel Towne Centre in July, getting 387,041 sf of the newest retail space in northern Prince Georges County, on Baltimore Avenue at Cherry Lane.

Greenberg Gibbons, working with partners Somera Capital and AEW Real Estate, did the ‘heavy lifting’ of entitling, building and tenanting the Towne Centre property, which is anchored by Harris Teeter’s first grocery store in the county. But Burlington Coat Factory, Regal Cinemas and Sports Authority all peddle their wares at the Main Street-style center too, plus an assortment of restaurants and smaller retailers.

The multi-family site was reportedly held out of the deal and is slated to trade to a builder in the near term.

Church Lane Shopping Center SoldCockeysville’s Church Lane Shopping Center is now under new ownership. The retail asset and the GJK Plaza recently sold together for a total of $19 million or $195.26 psf. A family partnership owned the 97,308-square-foot neighborhood shopping center for over 35 years. Completed in 1981 and located at 9946 York Road, the Church Lane Shopping Center offers 24 occupied retail units that also include the GJK Plaza. The shopping center’s tenant roster includes a number of national and local retailers, including Party City, JoAnn Fabrics, Tuesday Morning, Sleepy’s and Meineke.

INVESTMENTPROPERTIES

DIGEST

H&R Retail’s Investment Properties, led by Michael Gorsage, is pleased to present the Third Quarter of 2015 edition of the Digest. The Digest is an edited collection of articles that we gather from various publications. We hope you find the information useful.

page 2H&R RETAIL INVESTMENT PROPERTIES DIGEST [THIRD QUARTER 2015]

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JBG Buys Walgreens StoresIn late June, the JBG Companies bought a trio of Walgreens-anchored retail centers totaling 184,012 sf, for $72,767,130 from the New York-based Nightingale Group. The centers were located in Takoma Park, MD, Pikesville, MD and Vienna, VA.

Takoma Langley Crossroads, a 133,036 sf center located at the intersection of New Hampshire Avenue and University Boulevard in Takoma Park, MD, sold for $36.5 million, approximately an 8.4% cap. The center was 93.3% leased, and was co-anchored by an Aldi’s. Because a future Purple Line station is slated to be built within 100 feet, the property has been up-zoned to encourage higher density, should JBG look to redevelop. A new Transit Center funneling buses to the Crossroads’ front door is also under construction. As part of the transaction, JBG assumed the remaining $11.7 million outstanding balance on the trust held by Wells Fargo Bank.

The Pikesville, MD property, Old Court Shopping Center was 89% leased and consisted of a total of 25,476 sf. The two existing tenants were Walgreens and a Tete a Tete, it sold for $13,682,908, an approximate 5.3% cap.

The Vienna property, consisted of two tenants-Walgreens and Petco. It was originally built in the early 1970s as a Safeway, the total GLA was 25,500 sf and it sold for $22,584,222, approximately a 4.5% cap.

Travilah Square SoldFinmarc Management bought the 61,496 sf center from a Walgreens partnership for $22.4 million. Finmarc says it will renovate and redevelop the five structures, including a 16,000 sf unoccupied office building, at the corner of Darnestown Road and Travilah Road in North Potomac.

JBG Cos. Acquires Old Centreville CrossingThe JBG Cos. has acquired Old Centreville Crossing. The Chevy Chase, MD based company purchased the 173,935 sf Old Centreville Crossing for $55.5 million. The single story retail center in the southeast quadrant of Route 29 and Old Centreville Road, north of Braddock Road, was constructed in the late 1980s on the 15.89-acre commercially zoned site. The acquisition was made pursuant to an April 2015 Chapter 11 reorganization plan for Grand Centreville, LLC. At the time of the purchase, the center – anchored by Korean Grocer H-Mart-was 98% leased. Additional tenants in the center include Spa World, Glory Days Bar & Grill, and IHOP.

Clarksburg Town CenterThe Montgomery County Planning Board has backed a new plan for the never-built, decade old proposed Clarksburg Town Center. Elm Street Development’s outline for the hilltop fronting on Route 355 near Stringtown Road will bring a ‘main street’ style project of up to 205,000 sf of retail and office to Clarksburg, but one shorn of some the costly frills, like structured parking and live/work units, that had been incorporated into the last design.

Elm Street has spent the last 36 months selling its idea for a pared-back center to local residents, convincing them that the gold-plated ‘new urbanist’ design promised by previous owners and approved to help settle the contentious Town Center debate would never get built. The community gradually agreed, as Elm Street’s crucial appearance before the Board yielded little opposition, but instead support for a retail center far past its time. Elm Street has suggested that it will deliver the new center in the 2018 time frame, and Flanagan says at this point no leases are signed. Adventist Hospital has, however, expressed interest in a medical office building at the Center.

Most of Owings Mills Mall to be demolished, redeveloped The interior of Owings Mills Mall has been closed. A spokesman for mall owner Kimco Realty confirmed the closure.

David F. Bujnicki, the Kimco spokesman, said in an email that the New York-based real estate investment trust is evaluating “various redevelopment options for Owings Mills Mall, including several open-air shopping center concepts,” but that no plan has been finalized.

Macy’s, the JC Penney department store and AMC Theater at the mall remain open, as do restaurants outside the mall such as Olive Garden and Don Pablo’s Mexican Kitchen. A Macy’s spokesman said Tuesday that the retailer has agreed to sell the store building to Kimco and close in November.

Opened by The Rouse Co. in 1986, Owings Mills Mall was one of the area’s first regional malls and was once anchored by Lord & Taylor, Saks Fifth Avenue, Boscov’s and Sears. It has struggled with the loss of anchors, high vacancies and competition from newer malls and open-air shopping center formats.

In May, Baltimore County approved updated plans for Kimco’s redevelopment in advance of the Las Vegas ICSC.

page 3H&R RETAIL INVESTMENT PROPERTIES DIGEST [THIRD QUARTER 2015]

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INVESTMENT OPPORTUNITY

SOLDROOMS TO GO @ WESTPARK SHOPPING CENTERGLEN ALLEN, VA

BUILDING 84,683 SF

MAJOR TENANTS

Rooms To Go 84,683 SF

PARKWAY CROSSINGPARKVILLE, MD

BUILDING 260,241 SF

MAJOR TENANTS

ShopRite 55,144 SF

Home Depot 111,131 SF

The plans show Kimco inverting the site, with parking on the inside and new big-box retail stores and restaurants of various sizes on the outside, ranging from about 6,000 sf to nearly 70,000 sf. One option included a 12-story office building of about 300,000 sf. The movie theater would remain under the new plans.

In 2011, Kimco formed a partnership with General Growth Properties, which owned the mall at the time, to “de-mall” the property by demolishing it and building an outdoor town center similar to one in White Marsh. As of December, General Growth Properties owned 51% of the more than 1 million-sf mall, which was 34% leased at the time.

FOR MORE INFORMATION PLEASE CONTACT

MICHAEL GORSAGE 240.482.3600 (office) | 301.466.7080 (cell)mgorsage@hrretail.com

KATE HOWARTH 240.482.3601 (office) | 202.423.5747 (cell)khowarth@hrretail.comH&R RETAIL www.hrretail.com

7201 Wisconsin Avenue, Suite 600 | Bethesda, MD 20814 | 301.656.3030

NEW SUPERMARKET AND CLUB STORE OPENINGS IN THE NEXT THREE YEARS

CALIFORNIA, MD ALEXANDRIA, VA

STERLING, VA

FALLS CHURCH, VAHAYMARKET, VABETHESDA, MD

SEVERNA PARK, MDMERRIFIELD, VA

STERLING, VAEASTON, MD

BALTIMORE, MDARLINGTON, VA

ROCKVILLE, MDHYATTSVILLE, MD

COLLEGE PARK, MDROSSLYN, VA

SOUTH RIDING, VAELDERSBURG, MD

ROCKVILLE, MDWOODBRIDGE, VA

LAPLATA, MDCAMBRIDGE, MD

WASHINGTON, DC(3)OXON HILL, MD

BALTIMORE, MDBEL AIR, MD

OWNINGS MILLS, MDTYSON’S CORNER, VA

CHANTILLY, VA

BRUNSWICK, MD

RIVERDALE, MDASHBURN, VA

ARLINGTON, VABALTIMORE, MD

WASHINGTON, DC(2)TOWSON, MD

BALTIMORE, MD; EASTON, MD

MONROVIA, MD

ODENTON, MD

FALLS CHURCH, VA