New York Investor Pays $36.6M For Shopping Center In Charlotte
New York-based DLC Management Corp. has acquired an open-air shopping center in Charlotte’s Northlake neighborhood.
The center, Perimeter Woods, sits at 10125 Perimeter Parkway, across from Northlake Mall, and is accessible via Interstates 485 and 77, the Charlotte Business Journal reported. The 127K SF retail center is anchored by Best Buy, PetSmart, Burlington and Michael’s. The property spans more than 20 acres along the parkway.
The $36.6M deal for the site was part of a six-property acquisition by DLC, which specializes in open-air shopping center development. DLC owns and operates nearly 100 centers in the U.S., including the 303K SF Pavilion at King’s Grant in Concord, north of Charlotte. The six-property deal adds more than 1M SF to the firm’s portfolio across several states, according to the CBJ.
The Perimeter Woods acquisition reflects continued investor interest in Charlotte’s retail market, despite the challenges the 1.1M SF Northlake Mall across the street has faced. The enclosed mall sold last year for about $39M following a period of financial distress.
Open-air shopping centers tend to be more reliable assets than enclosed malls, as their mainstream retail anchors, like grocery markets or big-box stores, provide stable shopping traffic, according to investment firm RockStep Capital. Enclosed malls include a variety of tenants to manage, from entertainment to dining to fitness, and often require longer lease terms. Open-air centers usually have lower operating costs, better visibility and accessibility, and are more sustainable than indoor malls, according to a McNeil Engineering report.
In recent years, many retailers have shifted from malls toward "outdoor, non-mall locations such as grocery-anchored shopping centers and strip malls," The Wall Street Journal reported in 2024.
Among three different mall formats — indoor malls, open-air shopping centers and outlet malls — open-air shopping centers saw the most traffic growth year-over-year, according to the April Placer.ai mall index. Those centers' visits rose 3.5% in April compared to the previous year, while indoor malls saw a 2.2% increase.
Retail vacancy in Charlotte is among the lowest in the U.S., at less than 2.9%, according to a first-quarter Colliers report. The rate has stayed below 3% for three consecutive years.
Charlotte has a few more enclosed malls in addition to Northlake, including SouthPark Mall, Concord Mills and Carolina Place Mall. But the metro has many more open-air shopping sites — at least 15 open-air malls, like Phillips Place — as well as walkable shopping-oriented villages.
DLC made the acquisition with a fund managed by investment adviser DRA Advisors, the CBJ reported. The seller was KRG Charlotte Perimeter Woods LLC, affiliated with Kite Realty Group.
