Next Realty, LLC through affiliates and on behalf of Next Realty Fund VIII, LP, closed on the acquisition of two grocery-anchored shopping centers in Richmond, VA and Barrington, IL. The combined value of the transactions exceeded $27 million. Individual purchase prices were not disclosed.
“The grocery industry has gone through a significant evolution over the last several years, with the consolidation of certain operators and the expansion of others,” said Eteri Zaslavsky, Managing Director, Next Realty, LLC. “As the capital markets continue to strengthen, investments in centers that have strong grocery anchor tenants have become more attractive.”
Stony Point Shopping Center and Martin’s Food Markets, Richmond, VA
Next Realty, through a joint-venture with a local operating partner Verris Capital, a Washington D.C. based commercial real estate investment firm, acquired Stony Point Shopping Center, a 72,719-square-foot center located at 3000 Stony Point Road in Richmond, VA. Simultaneously, the venture also acquired the adjacent 40,000-square-foot anchor building that is occupied by Martin’s Food Markets. Martin’s is operated by Giant Food Stores which is owned by a leading international supermarket conglomerate Royal Ahold.
According to Andy Hochberg, CEO and Managing Principal, Next Realty, LLC, unifying the two parcels under one ownership creates greater synergies that will help us optimize and improve the center’s operations. “Putting together the two acquisitions was a significant accomplishment, and now we can focus on leasing up the remaining vacant space to further enhance the value of the center,” he added. Built in 1984, Stony Point is a neighborhood shopping center occupied by a mix of national, regional, and local tenants. The property is currently 85% leased, with the largest in-line tenants being Good Foods Grocery, a local operator featuring specialty offerings and organic products, Einstein Bagels and Southbound Restaurant, a new restaurant recently launched by two local award-winning chefs in Richmond. In total, the property is occupied by more than 20 tenants.
The Shops at Flint Creek, Barrington, IL
In the second acquisition, Next Realty, LLC acquired The Shops at Flint Creek, a 59,324-square-foot center located at 500 North Hough Street in Barrington, IL.
The property, developed in 2006 is 100% leased with Heinen’s Fine Foods as the anchor tenant. Heinen’s occupies approximately 38,000 square feet. This was the first Illinois store for the 90-year-old, family-owned, Cleveland-based company. Heinen’s subsequently has opened three additional stores in Glenview, Bannockburn and Lake Bluff (suburban Chicago).
The property features a diverse mix of retail, medical, financial and office tenants including Alexian Brothers Medical Group, Scottrade, Athletico of Barrington, Coldwell Banker and Meatheads Restaurant. “As a relative newcomer, Heinen’s is doing an excellent job establishing its position in the Chicago grocery market,” Zaslavsky said. “They are a great operator and provide a significant draw for the community.”