Avison Young brokers $200M sale of retail buildings in Kingstowne, VA
WASHINGTON, DC — Avison Young’s Capital Markets Group has brokered the sale of a premier portfolio of retail buildings in Kingstowne in Northern Virginia.
Federal Realty purchased the portfolio from The Halle Companies for $200 million. The portfolio features 410,398 s/f of best-in-class retail space anchored by two top-ranked grocery stores, Safeway and Giant. It includes a significant portion of Kingstowne Towne Center, a dynamic, live-work-play power center in Virginia.
The deal will close in two parts, with the first half closing this week and the second half expected to close in July. Representing the seller is an Avison Young Capital Markets team led by Dean Sands and Chip Ryan, principals in the firm’s U.S. Capital Markets Group.
“This portfolio represented an exceptional opportunity to acquire a generational asset that makes up the critical mass of Kingstowne Towne Center,” Dean said. “We are proud to work with The Halle Companies and Federal Realty on this extraordinary deal.”
The portfolio offers 410,398 s/f of retail featuring 61 diverse tenants, including Safeway and Giant. The institutionally owned and maintained buildings are 97 percent leased.
“Kingstowne Towne Center, with its attractive demographics and significant barriers to entry, is reflective of our Northern Virginia growth strategy, and further demonstrates our corporate commitment to seizing value-enhancing opportunities,” said Deirdre Johnson, senior vice president, asset management for Federal Realty. “Offering a convenient and walkable format, and more than 60 diverse retail and dining options, the center already possesses strong fundamentals. We look forward to bringing an elevated experience to the local community and further expanding our presence in the area as part of our long-term regional strategy.”
The portfolio is ideally located in Kingstowne near the Transportation Security Administration’s new headquarters (under 2 miles), the National Geospatial Intelligence Agency (3 miles), Fort Belvoir (4 miles), Amazon’s HQ2 (7 miles) and Washington, DC (10 miles).
Kingstowne is an extraordinarily popular community that continues to grow and thrive. After new multifamily buildings are constructed in the Kingstowne Towne Center, the local economy will be bolstered by another influx of young, affluent residents.