The Arbors shopping center on Mallard Creek Church Road has a new owner. Westwood Financial recently bought the center, home to Trader Joes, Hickory Tavern and 17 other national and regional specialty retailers, for $25.1 million. The center is located across the street from University Research Park and is almost fully leased.
Here are details of the sale, from a news release published by Westwood Financial on June 26.
Westwood Financial Acquires Trader Joe’s-Anchored Shopping Center in Charlotte, North Carolina
Charlotte, NC (June 26, 2017) – Westwood Financial LLC, a Los Angeles-based owner-operator of high-quality shopping centers with a portfolio totaling over $1.5 billion throughout the U.S., has acquired The Arbors at Mallard Creek, a 55,323 square-foot, Trade Joe’s-anchored neighborhood center in Charlotte, North Carolina for $25.1 million.
“Trader Joe’s is one of the strongest and fastest growing specialty grocers in the nation today, outperforming other fresh format and traditional grocery stores in sales per square foot,” says Joe Dykstra, Co-CEO of Westwood Financial.
“This retailer has created great customer loyalty, which we have experienced for many years in California, while differentiating itself by delivering a unique shopping experience and quality at a reasonable price point because 80 percent of its store merchandise consists of proprietary brands. With 464 stores in highly educated and affluent locations throughout the U.S., Trader Joe’s is a strong anchor-tenant at neighborhood centers such as The Arbors.”
98 percent occupied at acquisition, the center boasts a high-quality tenant mix of 19 national and regional specialty retailers, including Petco and Massage Envy, as well as restaurants such as Hickory Tavern, Zoë’s Kitchen, and more.
“This center has commanded historically high renewal rates and strong leases with scheduled rental increases, providing stable cash flow and upside potential,” continues Dykstra. “As one of the primary retail centers in Charlotte with the only Trader Joe’s in a 10-mile radius, the asset faces limited competition and will continue to perform extremely well over time.”
Located in the University City neighborhood of Charlotte, home to over 20 Fortune 500 companies, The Arbors at Mallard Creek serves a highly educated and affluent community. The average household income in a one-mile radius is $120,727, and population growth is projected to increase 2.24% over the next four years.
“Charlotte has emerged as a financial powerhouse and currently ranks as the second largest financial center in the country,” explains Co-CEO Randy Banchik. “The market has demonstrated rapid growth and strong employment gains across all sectors, especially in the financial industry. Based on these fundamentals, this retail center is well-positioned to cater to local businesses and nearly 90,000 employees within a five-mile radius.”
Banchik notes that the property is located in close proximity to the University Research Park, and about four miles away from the University of North Carolina, Charlotte, serving as the primary daily needs center for employees and students throughout the area.
The region’s highly educated and affluent demographic translates to enormous consumer buying power and will continue to drive strong demand for this retail asset, according to Banchik. Grocery-anchored, necessity retail centers in densely populated areas are enjoying high demand and resiliency in the midst of the evolving retail landscape, according to Banchik.
“As the retail landscape continues to evolve, daily needs centers have proven to be resilient to pressures facing traditional brick-and-mortar retailers,” adds Banchik. “This asset boasts a variety of internet resistant tenants, insulating it from factors such as the rise of online shopping. Overall, this acquisition is well-aligned with our strategy of targeting daily needs centers with high-quality tenants that can cater to the demands of today’s consumers.”
The Arbors at Mallard Creek is located at 2121 E. Arbors Drive in Charlotte, North Carolina. The property is situated at the intersection of Mallard Creek Church Road and Senator Royall Drive, a mile away from the I-85 freeway, and is visible to 43,000 vehicles per day.
Mike Burkard and Casey Rosen at CBRE | National Retail Partners represented both the buyer and seller in this transaction.
About Westwood Financial
Westwood Financial is a pure-play shopping center company with more than $1.5 billion in real estate assets under ownership and management throughout the U.S. With more than 115 shopping centers across 26 U.S. markets, the firm focuses on acquiring best in class grocery-anchored necessity retail properties in select growth markets with strong demographics. A leader in the shopping center industry, Westwood has amassed an institutional-quality portfolio of daily needs centers in more than 25 states, and continues to seek dynamic sites in the top MSAs in the United States to further grow its portfolio.
Established in 1970 and transformed in 2016, Westwood Financial is headquartered in Los Angeles, with regional offices in Dallas, Atlanta, and Scottsdale.
More information is available at www.westfin.com.