June 3, 2021
CRC Acquires 98% Occupied, LA Fitness-Anchored Center North Of Atlanta For $11.6M
Continental Realty Fund V, a $210.8 million private equity Fund, continues to seek retail property acquisition opportunities following 8th retail purchase and 10th asset overall
Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has announced the acquisition of The Summit at Towne Lake, a 59,772 square foot, 98% occupied neighborhood shopping center in Woodstock, Georgia anchored by LA Fitness. Located in a suburb approximately 30 miles north of downtown Atlanta, the shopping center was purchased for $11.6 million. Formerly owned by a joint venture between Atlanta-based RCG Ventures, LLC and New York City-headquartered DRA Advisors LLC, The Summit at Towne Lake becomes the second retail center and third asset owned and managed by CRC in Georgia. The buyer and the seller were both represented by Bryan Belk of Franklin Street.
The asset was purchased on behalf of Continental Realty Fund V, L.P., a $210.8 million private equity fund focused on acquiring value-add retail and multifamily properties in the Mid-Atlantic and Southeast regions. This represents the eighth retail property and tenth asset overall acquired by the fund, following last month’s acquisition of The Shoppes at Sherbrooke, a 100% occupied, 57,901 square foot neighborhood shopping center anchored by LA Fitness in Palm Beach County, Florida. Continental Realty Fund V has now acquired approximately $170 million worth of retail property since the beginning of 2020.
CRC also owns North Bridges, a 106,396 square foot neighborhood shopping center in Alpharetta, Georgia, and Millworks Apartments a 345-unit apartment community located in the Buckhead section of downtown Atlanta.
Constructed in 2009 and located at 2060 Eagle Drive at the signalized intersection of Putnam Ford Drive and Eagle Drive, The Summit at Towne Lake features a tenant mix comprised of six national and local retailers offering health and fitness, medical, beauty services, and a fast-casual dining option for the local community. The approximate 8.5-acre site includes three retail buildings, a surface parking lot that can accommodate 419 vehicles and four ingress and egress points.
The Summit at Towne Lake is located within Towne Lake, a planned community built in the late 1980s that functions as the primary commercial, entertainment, and recreational center for businesses and residents of Cherokee County. Nearly 150,000 consumers reside within a five-mile radius of The Summit at Towne Lake, approximately 130,000 households have an average household income exceeding $111,000. Woodstock is considered among the fastest-growing cities in Cherokee County and Northern Georgia, with a population that is expected to rise by nearly 160,000 residents over the next 20 years, for a total of nearly 400,000 people. Nearly 38,000 jobs are expected to be created in the immediate area by 2040. According to www.Bestplaces.net, Woodstock has an unemployment rate of 2.8%, compared to the United States average of 6%.
Second LA Fitness-anchored asset recently acquired by CRC
“We identified The Summit at Towne Lake as a high-quality asset based on the long-term leasing commitment of LA Fitness, combined with the existence of five complimentary retailers that performed extremely well during the pandemic,” stated Josh Dinstein, Senior Vice President, Acquisitions for Continental Realty Corporation. “This retail center provides a tremendous opportunity to deliver a solid risk-adjusted yield to our investors with an anchor tenant that is Internet-resistant and considered the top-performing health club chain in the country.
“Our immediate priority is to elevate the center to 100% occupancy and implement our asset management protocols to improve overall operational efficiencies.”
Sustained economic strength of Woodstock and greater Cherokee County region
According to the Cherokee Office of Economic Development, the county has attracted more than 4,500 jobs over the past five years and has generated nearly $900 million worth of capital investments. Cherokee County has access to a labor shed of nearly three million workers and is considered the fastest-growing county in the greater Atlanta region.
“Every demographic metric demonstrates the sustained growth and vibrancy of the City of Woodstock and Cherokee County, led by the acceleration of new jobs into the regional economy, driven by business growth and an attractive climate and lifestyle,” stated JM Schapiro, CEO of Continental Realty Corporation. “The region also benefits from its proximity to nearby Atlanta, which is the eighth-largest economy in the country, with a gross domestic product that is forecasted to grow to $474 billion by 2040. The lack of new retail development and immediate proximity of dense residential neighborhoods will create long-term value for our investors.”
More than 37,000 vehicles pass The Summit at Towne Lake via Eagle Drive each day. The center is located several miles from Interstate 575, less than eight miles from Kennesaw and approximately 45 minutes from Hartsfield-Jackson International Airport.
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 more than five million square feet of commercial space, as well as nearly 9,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the portfolio’s value exceeds $2 billion. For additional information, visit www.crcrealty.com.
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