Wegmans, Costco-Anchored Prince George's County Shopping Center Sells For Nearly $200M
A massive shopping center in Prince George's County has traded hands, along with an adjacent 22-acre development site.
Urban Edge, a publicly traded REIT that spun off from Vornado Realty Trust in 2015, acquired the Woodmore Town Centre property for $193.4M, it announced Monday.
The 83-acre, 712K SF shopping center is 97% leased, the buyer said. It is anchored by Wegmans, Costco, Best Buy, At Home and Nordstrom Rack, and it features a host of smaller retailers and restaurants. Woodmore Town Centre was Maryland's second-most-visited open-air shopping center last year with over 6 million visitors, according to Urban Edge.
The acquisition also included an adjacent 22-acre land parcel, which Urban Edge said may be developed in the future for commercial use.
The property was sold by the partnership that built it: Heritage Partners, formerly known as Petrie Richardson Ventures, and Prudential Real Estate Investors. The joint venture closed the financing deal to develop the property in the midst of the Great Financial Crisis in 2008, and the shopping center opened in 2010.
The Woodmore Town Centre retail property is part of a larger mixed-use community that also includes 500 residences, a Hampton Inn & Suites hotel and a Children's National medical center. It sits near the interchange of the Beltway and MD-202.
The acquisition penciled out to an unleveraged yield of 6.4% and was secured with a $117.2M nonrecourse loan with a 10-year term at a 3.39% interest rate as part of the deal. The sale, which closed Dec. 23, was part of a flurry of D.C.-area investment sales deals that closed in the final weeks of the year.
Urban Edge, a retail-focused REIT, owns 75 properties totaling 17M SF across several markets, with the largest concentration in the New York City area. Its other D.C.-area holdings include retail properties in Rockville and Wheaton, according to its website.
"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," Urban Edge CEO Jeff Olson said in a release. "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."