Continental Realty Corp. has purchased a Glen Burnie shopping center for $16.2 million.
The firm said on Thursday that it purchased Governors Commons at 7311 Ritchie Highway. The 129,242-square-foot center is anchored by Gavigan’s Furniture and is 100% occupied.
“We were especially drawn to the opportunity to acquire a well-located, large parcel fronting Ritchie Highway at a very attractive going-in yield and well below replacement cost with the ability to execute our thesis and improve the center for the long term,” Paul Kang, CRC’s vice president of Acquisitions, said in a statement.
Located at the intersection of Ritchie Highway and Sixth Avenue, the shopping center includes tenants such as Pep Boys, Sake Japanese Steakhouse and Goodwill Industries. Roughly 85,000 residents live within a three-mile radius of the shopping center and have an average household income of $80,000, according to CRC.
Newmark Knight Frank’s Mathew Adler, Geoffrey Millerd, and Chris Huesgen brokered the transaction. Joe Donato of Newmark Knight Frank handled financing for the purchase.
Demand for suburban retail space outside of Baltimore remained relatively strong to start 2019. While some shops suffer from competition from online shopping outlets, brick-and-mortar locations, particularly those with an emphasis on “fast casual” eateries have proved to be resilient.
In the Baltimore metro area, which includes Glen Burnie, direct vacancy in retail properties remained essentially flat year over year in the first quarter of 2019 at 3.9%. The asking rental rate fell 21 cents per square foot at the start of 2019 compared to 2018.
The areas with the lowest retail vacancies were suburban areas including Columbia, White Marsh/Perry Hall and Fort McHenry. Columbia, with an average asking rent of $29.67 a square foot, had the highest rents in the metro region followed by the York Road corridor and Annapolis.
Baltimore-based CRC focuses on the acquisition of value-add retail assets. The privately held firm’s portfolio has more than 4 million square feet of commercial space, nearly 10,000 apartments and is valued in excess of $2 billion.