Finmarc Management Buys 250 KSF Retail Asset in Virginia
- May 23, 2019
Finmarc Management Inc., a Maryland-based commercial real estate firm, is expanding its retail holdings in Manassas, Va., acquiring Manaport Plaza. Combined Properties Inc. sold the 250,000-square-foot regional shopping center on the busy VA Route 234 for $29.7 million.
Located at 8345-8443 Sudley Road, Manaport Plaza is 90 percent occupied with stores including Marshalls, Gabes, Ollies, Tuesday Morning, McKay Books, Advance Auto Parts, Dollar Tree as well as numerous other retailers and restaurants. Nearly 100,000 people reside within 3 miles of Manaport Plaza with an average household income exceeding $86,000.
The shopping center is adjacent to Festival at Manassas, a 117,000-square-foot neighborhood shopping center Finmarc purchased in 2017. It’s also adjacent to Manassas Mall, a regional shopping center with more than 80 retailers and restaurants.
Finmarc executives said they expect to lease the remaining few spaces and stabilize the property to achieve long-term value. They believe in the long-term fundamentals of suburban retail centers in Northern Virginia due to the expanding population and above average income levels.
A 2019 retail investment forecast for the Washington, D.C., metro area by Marcus & Millichap notes the region is expected to gain 42,000 new positions this year, following the addition of 55,000 new jobs in 2018. The D.C. and Northern Virginia areas are expected to see development of about 1.4 million square feet of new retail space this year, up about 300,000 square feet from the 2018 construction total. Average asking rent is expected to rise about 1.5 percent to $27.08 per square foot this year as tight vacancy in some submarkets will spur rent growth. The Marcus & Millichap report noted more investors are looking in secondary markets—such as Manassas—where entry costs are lower.
Manaport Plaza is Finmarc’s second shopping center acquisition this year in the Mid-Atlantic region. In January, the company purchased Largo Town Center, a 280,000-square-foot shopping mall in Upper Marlboro, Md., from SITE Centers for $43.9 million. The regional shopping center was 100 percent leased at the time of acquisition with a tenant base including Shoppers Food Warehouse, Regency Furniture, Marshalls Advanced Auto, Dress Barn and Dollar Tree. It also has a mix of fast-casual and sit-down restaurants and tenants that offer business and consumer services.
In January, the company, which also owns and manages industrial/flex projects and office buildings throughout the Mid-Atlantic region, sold five single-story office buildings in Herndon, Va., for $21 million to Lincoln Property Co. The properties comprise nearly 110,000 square feet within the Van Buren Office Park.