West Coast Investor Likes Charlotte Retail, Buys Grocery-Anchored Center For $25M
For investors with an eye on growth markets like Charlotte, retail properties can still offer rent and value growth, especially with strong anchors. Los Angeles-based Westwood Financial recently acquired The Arbors at Mallard Creek, a 55K SF Trader Joe’s-anchored neighborhood center in Charlotte, for $25.1M.
“Trader Joe’s is one of the strongest specialty grocers in the nation today, outperforming other grocery stores in sales per square foot,” Westwood co-CEO Joe Dykstra said. “The retailer has created great customer loyalty, so Trader Joe’s is a strong anchor tenant at neighborhood centers such as The Arbors.”
The Arbors at Mallard Creek is at 2121 East Arbors Drive in Charlotte, at the intersection of Mallard Creek Church Road and Senator Royall Drive. Close to full occupancy, the center's tenant roster includes 19 national and regional specialty retailers, such as Petco and Massage Envy, as well as restaurants like Hickory Tavern and Zoë’s Kitchen.
Necessity retail centers in densely populated areas are enjoying high demand and resiliency despite the evolving retail landscape, according to co-CEO Randy Banchik.
A strong anchor is one thing, but it is also critical that the surrounding market be in a growth mode.
“Charlotte has emerged as a financial powerhouse and currently ranks as the second-largest financial center in the country,” Banchik said. “The market has demonstrated rapid growth and strong employment gains across all sectors, especially in the financial industry."
Mike Burkard and Casey Rosen at CBRE | National Retail Partners represented both the buyer and seller.