RPAI to Buy Slice of DC-Area Mixed-Use Asset
- Sep 22, 2016
Washington—Retail Properties of America Inc. has entered into an agreement to purchase, for roughly $163 million, One Loudoun Downtown, a retail/office development in Ashburn, Va., in metro Washington, D.C., RPAI announced Tuesday. The sellers are Miller & Smith and North America Sekisui House LLC, which will continue to be the master developers for the 360-acre One Loudoun mixed-use project.
The acquisition will be closed in phases, with the first phase, representing a purchase price of up to $125 million, expected to close by the end of this year. The remaining phases, representing an additional price of up to $38.1 million, are expected to close throughout the first three quarters of 2017, as the sellers complete construction on stand-alone buildings at the property.
RPAI did not respond to Commercial Property Executive’s request for additional information.
The retail portion of One Loudoun Downtown is anchored by Alamo Drafthouse Cinema, The Fresh Market, Great Gatherings and The Fitness Equation, and includes a mix of fast-casual and sit-down restaurants. The first phase consists of 236,800 square feet of retail and 105,200 square feet of office space, which are 85.6 percent occupied and 89.7 percent leased.
The remaining phases are under development and expected to contain approximately 78,300 square feet of retail and 46,300 square feet of office space, which are 71.0 percent leased.
Entitled for residential, hospitality, retail and office uses, One Loudoun encompasses one of the nation’s most affluent and well-educated zip codes. The population of 182,000 within a 5-mile radius reportedly boasts an average household income of $142,000.
“This acquisition augments our significant footprint in the Washington, D.C., market and will allow us to leverage our local knowledge and considerable mixed-use experience to continue to transform the property into Loudoun County’s premier shopping and entertainment destination,” Shane Garrison, RPAI Executive Vice President, COO & CIO, said in a prepared statement.
Overall, One Loudoun currently is slated to consist of 1,040 residences, including single-family homes, townhomes and multi-family units; 3 million square feet of Class A office space, including the future home of the World Trade Center Dulles Airport; 702,000 square feet of retail; and 150 acres of public land and green space. Recreational amenities reportedly will include a community center, amphitheater, pocket parks and miles of walking trails.
Another component, a 5,500-seat stadium, was to have been home to the Loudoun Hounds minor-league baseball team and the Virginia Cavalry FC of the North American Soccer League, but neither the teams nor the stadium came to fruition.
Last March, CPE reported on Gramercy District, a planned $500 million, tech-centered mixed-use development that is set to break ground next year in Loudoun County.