Rosenthal, PGIM Buy Richmond-Area Retail Portfolio for $125M
- Mar 14, 2019
Rosenthal Properties and PGIM Real Estate are now the owners of an approximately 745,000-square-foot, grocery-anchored shopping center portfolio in metropolitan Richmond. The companies formed a joint venture to acquire the group of five retail properties from Marchetti Properties in a $125 million transaction.
The collection of first-class shopping centers includes the 165,000-square-foot Staples Mill Marketplace; the 95,000-square-foot Staples Mill Square; Parham Plaza, a 177,000-square-foot property; Ridge Shopping Center, which features 100,000 square feet of space; and the 205,000-square-foot Stonehenge Village.
“Solid economic and demographic trends in the Richmond submarkets are supporting retail sales growth, and we expect this portfolio of high-quality and well-located necessity retailers will benefit from pro-business initiatives that will continue to attract an array of industries,” Alfonso Munk, Americas chief investment officer for PGIM Real Estate, said in a prepared statement.
The portfolio, which also features developable outparcels, is currently approximately 95 percent leased and counts on its list of anchors such national grocers and discounters as Aldi, Kroger, T.J. Maxx, Walmart and Wegmans.
Rosenthal will take on the role of operating partner of the joint venture and will oversee managing and leasing at the properties.
Rosenthal’s Gregory Jacobsen orchestrated the transaction, along with PGIM Real Estate’s Todd Goldberg, Rushabh Shah and Glenn Rosenthal. Connie Jordan Nielsen with Cushman & Wakefield Thalhimer represented seller Marchetti and will join Rosenthal in spearheading leasing at the portfolio.
All’s rosy in Richmond retail
Rosenthal and PGIM Real Estate plan to inject new life into the portfolio with the development of the available outparcels and a reworking of the mix of national and local tenants. The Richmond market is thriving right now, so the timing appears right for new development and the shuffling of tenants.
The vacancy rate in Richmond has been on a steady decline since 2013, dropping to just 4.5 percent in the fourth quarter of 2018, per a report by Thalhimer. And with average rental rates having increased roughly 5.8 percent in the last 12 months, Richmond’s retail market is a huge draw for investors and managers alike.