AvalonBay, Regency Centers Buy Arlington Mixed-Use Development for $406M
- May 18, 2016
The development boasts 300 Class A apartment homes; 300,000 square feet of retail anchored by Whole Foods Market, Apple, Crate & Barrel, The Container Store, Pottery Barn and Williams-Sonoma; and an adjacent vacant building identified for future redevelopment.
“Opportunities to acquire properties like Market Common Clarendon rarely present themselves,” Alan Roth, Regency Centers’ managing director of the eastern U.S., told Commercial Property Executive. “We thoughtfully underwrote this transaction and are confident we can execute on our strategy with enhancements to the property and also achieve strong growth. Our economy will always experience its ups and downs over time, but given our company’s long-term-hold strategy, strong real estate will always prevail in the end.”
According to the deal, AvalonBay will acquire all of the benefits of the residential components, while Regency will acquire the retail and all remaining components.
“Market Common is a seasoned and cycle-tested 10-acre urban shopping center that perfectly reflects our investment strategy of acquiring best-in-class properties in highly desirable markets,” Barry Argalas, Regency Centers’ senior vice president of national transactions, said in a prepared release. “The combination of a dense, affluent and highly educated customer base, along with the convenient access to the Clarendon metro station, all contribute to the success of the retailers.”
Developed in 2001, the property was acquired by TIAA-CREF the following year for $166 million, according to the Washington Business Journal.
Market Common Clarendon is located approximately five miles from Washington, D.C.
“This property isn’t just a collection of buildings, it’s a part of the community’s everyday life,” Roth said. “The outstanding lineup of shops located here, combined with the walkability of the neighborhood and prime location, is the perfect match for how we operate. We are big advocates of being good neighbors in our business practices, and this is a fantastic neighborhood.”
Regency’s portfolio now consists of 313 retail properties encompassing more than 40 million square feet and located in top markets throughout the U.S., including co-investment partnerships.
According to Colliers International’s first quarter 2016 market report on Northern Virginia, the submarket’s economy has created more than 15,400 new office-using jobs over the last 12 months, growing 2.1 percent since the end of February 2015. This bodes well for growth in both the multifamily and retail segments.