August 28, 2019
CRC Acquires 331,000 Square Foot Centre at Hagerstown in Washington County
CRC has announced the acquisition of Centre at Hagerstown for $23.5 million. The 331,000 square-foot retail center is a major regional shopping destination in Washington County, and it was 93% leased and occupied at the time of the purchase. The property, located at 17850 Garland Groh Boulevard in Hagerstown, Maryland, features a diverse tenant mix of national and local retailers and restaurants. Anchor stores include Bed Bath & Beyond, Marshalls, Books-A-Million, OfficeMax, PetSmart, Regency Furniture, 2nd & Charles, and A.C. Moore. The seller was Washington REIT, represented by Danny Finkle, Jordan Lex, and John Owendoff of Jones-Lang-LaSalle.
Positioned at the intersection of Interstate 81 and National Pike (U.S. Route 40), the shopping center asset includes ten pad sites with direct roadside visibility from both highways. These sites are predominantly leased and occupied by national fast-casual and quick-service restaurant brands. The center’s restaurant roster includes Arby’s, IHOP, KFC, McDonald’s, Panera Bread, TGI Fridays, UNO Pizzeria & Grill, and Wendy’s. More than 54,000 people reside within a three-mile radius of Centre at Hagerstown, with average household income exceeding $60,000. The asset was acquired on behalf of Continental Realty Fund V, L.P., which is focused on acquiring value-add retail and multifamily properties in the Mid-Atlantic and Southeast regions and represents the fourth retail property purchased by the Fund and fifth overall.
“We were drawn to the opportunity to acquire a preeminent shopping center that serves the Hagerstown community. We purchased the property below replacement cost, and we’ll have the ability to add significant value to it with the execution of our business plan,” stated Paul Kang, Vice President of Acquisitions, Continental Realty Corporation. “We view Centre at Hagerstown as an institutional-quality asset with a great location in a promising, multi-state trade area. There are definable value-creation opportunities for remerchandising and leasing. This purchase seems to us a solid risk-adjusted yield in an area of Maryland we know very well.”
More than 62,000 vehicles per day pass Centre at Hagerstown via Interstate 81 and the center also features a signalized entrance on US Route 40, a road that conveys 13,000 vehicles per day. Shadowing the shopping center is The Home Depot and Walmart Supercenter, both of which feature an abundance of free parking. There are also numerous business communities in the immediate vicinity. All told, the daytime population within a three-mile radius of Centre at Hagerstown swells to nearly 30,000 people.
Hagerstown is the county seat of Washington County, and it currently ranks as the sixth-largest incorporated city in the State of Maryland. The Hagerstown-Martinsburg Metropolitan Area extends into West Virginia with a collective population of approximately 270,000 people.
Continental Realty Corporation (CRC), is focused on acquiring value-add retail and multifamily properties, located throughout the Mid-Atlantic and Southeast regions of the United States. Headquartered in Baltimore and founded in 1960, CRC is a full-service commercial real estate and investment company. The privately-owned firm owns and manages a diversified portfolio of retail centers, consisting of over 4.5 million square feet of commercial space, as well as almost 10,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the portfolio’s value exceeds $2 billion.
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