DLC, Meadow Partners Make $69M Retail Investment
DLC and Meadow Partners have acquired Penn Mar Shopping Center, a 378,205-square-foot, grocery-anchored shopping center located inside Washington, D.C.’s Capital Beltway. The previous owner was MEPT, according to CommercialEdge information.
The Forestville, Md., asset changed hands in a $68.5 million, off-market transaction. Apollo and Athene provided acquisition financing.
DLC now owns more than $250 million of open-air retail in the southern portion of Prince George’s County.
Anchored by a grocery store
Completed in 1960, Penn Mar was 91.5 percent leased at the time of sale. It is anchored by the highest-trafficked Shoppers Food Warehouse, which recently completed a 10-year renewal and a full store renovation. Other national anchor tenants include Burlington, Ross Dress for Less, Dollar Tree, Petco and Foot Locker.
The property also features eight single-tenant pad sites, home to Starbucks, Truist Bank, Taco Bell, Raising Cane’s, IHOP, Wendy’s and Long John Silver’s.
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Penn Mar is in Prince George’s County, less than 10 miles from downtown Washington, D.C. The shopping center has an average household income of $95,430 and a population of more than 95,000 within a 3-mile radius.
DLC has been an owner/operator in Prince George’s County for more than 20 years. The acquisition of Penn Mar complements an existing portfolio of three grocery-anchored and value-oriented retail assets totaling more than 658,000 square feet.
The firm benefits from a growth capital commitment provided by Temerity Strategic Partners. In December 2023, TSP and DLC launched a venture aimed at enabling the latter to double its portfolio size by 2025.
Shoppers drawn to ‘all-in-one’ setup
Josh Schrier, executive vice president & CIO at PREIT, told Commercial Property Executive that shoppers are now drawn to dynamic, multi-use properties where they can shop, dine, play and stay all in one place.
“In a densely populated market with a great consumer base and thousands of new housing units developed recently, demand for space has been steadily increasing, suggesting a strong investment opportunity,” Schrier said.
On the other hand, open-air shopping centers experience the highest purchasing demand, combined with the least availability from sellers. Despite financing conditions remaining tight, pricing hasn’t softened, due to strong investor interest.
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