WASHINGTON, D.C. — Retail Properties of America Inc. (NYSE: RPAI), a retail REIT based in Oak Brook, Ill., has acquired two shopping centers located in the metro Washington, D.C., area for a combined purchase price of $121.5 million. The properties were acquired through an off-market negotiation on an unencumbered basis.
Merrifield Town Center in Falls Church, Va., was acquired for a gross purchase price of $56.5 million and consists of 85,000 square feet of street-level retail beneath two high-rise residential buildings. The center sits at the main entrance to the Mosaic District, a 31-acre mixed-used development that is comprised of retail, office, residential and hotel uses.
Merrifield Town Center was developed in 2008 and is currently 100 percent leased to tenants such as XSport Fitness, Chipotle Mexican Grill, Panera Bread and Noodles & Co.
Fort Evans Plaza II in Leesburg, Va., was acquired for a gross purchase price of $65 million. The property is a 229,000-square-foot power center that is currently 98 percent leased to tenants such as Marshalls, Bed Bath & Beyond, Dollar Tree and Five Below.
Year to date, RPAI has closed on $284.3 million of acquisitions, including the previously announced acquisition of the retail portion of Downtown Crown. As a result of these transactions, the company now owns more than 2.9 million square feet in the Washington, D.C./Baltimore area.
“Our substantial year-to-date acquisition activity demonstrates the depth of our relationships in the Washington, D.C. market,” says Shane Garrison, executive vice president, chief investment officer and chief operating officer of RPAI. “These acquisitions represent a significant expansion in one of our target markets, as we continue to execute on our long-term geographic concentration strategy.”
RPAI is one of the largest owners and operators of high-quality shopping centers in the United States. As of Sept. 30, 2014, the company owned 218 retail operating properties representing 31.1 million square feet.
RPAI’s stock price closed Friday, Jan. 23 at $18.03 per share, up from $12.78 per share at this time last year.
— John Nelson