Finmarc Cashes In $52M for DC-Area Value-Add Play
- Sep 13, 2019
Finmarc Management Inc. has sold Travilah Square, a 61,500-square-foot shopping center in North Potomac, Md., to InvenTrust Properties Corp. for $52.3 million. The seller executed a value-add play, having acquired the asset in 2014 and implementing improvements before landing Trader Joe’s as a new anchor tenant in September 2018.
Constructed in 1988 and located less than 2 miles west of Interstate 270 in Montgomery County’s I-270 Tech Corridor, the property is close to the University of Maryland Shady Grove campus, Shady Grove Adventist Hospital and the Shady Grove Life Sciences Campus, which includes more than 45,000 full-time employees, according to the seller. Apart from Trader Joe’s, Travilah Square’s tenant roster also includes Banfield Pet Hospital, Title Boxing Club and ATI Physical Therapy, as well as dining options such as Flower Child, Café Rio, Ledo Pizza and Pholuscious Vietnamese Grill.
CBRE’s Ryan Sciullo and Bill Kent represented the seller in the retail transaction, while Joseph Hoffman and Aaron Rosenfeld of Kelley, Drye & Warren provided legal services on behalf of Finmarc. Bisnow reports that some of the sale proceeds could be directed toward a 500-unit multifamily project that Finmarc filed a development application form for, in partnership with EYA, earlier this month.
According to David Fink, principal of Finmarc Management, the seller was initially interested in the asset due to the area’s strong fundamentals, including affluent demographics, with more than 110,000 consumers residing within 3 miles of the shopping center. The median household income within a 3-mile radius is above $120,000 and the average one-bedroom rent is nearly $1,700, data provided by Yardi Matrix shows.
Late last month, InvenTrust Properties sold the 199,000-square-foot Chesapeake Commons shopping center located in the Hampton Roads area of Virginia. American Commercial Realty Corp. bought the 28-year-old asset with plans to reposition it.