Continental Realty Corp., on behalf of Continental Realty Fund V, LP, sold the Centre at Hagerstown, a 300,000-square-foot regional shopping center in Hagerstown, Maryland, for $36.3 million.
CRC acquired the mall in 2019 as an investment through Fund V. Since acquiring the property, the Baltimore-based company has sold nine of 10 vacant lots for $16.1 million, with an average capitalization rate of 5.4 percent. The total sale value, including the sale of the mall, is approximately $52.4 million – more than double the original purchase price of $23.5 million.
JLL brokered the transaction on behalf of CRC. At the time of the sale, the mall was 97 percent leased. CRC increased the center’s occupancy rate from 79 percent to 97 percent during its ownership by signing new long-term leases with Burlington, Crunch Fitness, Guitar Center, HomeGoods and Party City.
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With Burlington, Crunch Fitness, Home Goods, Marshalls, PetSmart, Regency Furniture, 2nd & Charles and Party City as anchor stores and The Home Depot and a Walmart Supercenter as shadow anchors, Centre at Hagerstown offers a diverse mix of nearly 20 national and regional retailers.
Centre at Hagerstown is located at 17850 Garland Groh Blvd. in Washington County. The mall is near the intersection of Interstate 81 and Route 40, in an area that sees approximately 76,000 vehicles travel daily. Centre at Hagerstown serves more than 92,000 residents within a 5-mile radius, with the median household income above $80,000, according to the CRC.
A rapid expansion
CRC operates in 11 states, manages over $4 billion in assets, and has added more than 3 million square feet to its shopping center portfolio since 2020. The company currently owns and manages nearly 9 million square feet of retail space, as well as a multifamily portfolio with over 9,000 apartments.
Earlier this year, CRC, through its Continental Realty Opportunistic Retail Fund I LP, acquired a 160,000-square-foot shopping center in Richmond in its first purchase in Virginia. ShopCore sold the property for $22 million.
Last year, the company entered the Southern California market with the acquisition of a 300,000-square-foot luxury shopping center in Costa Mesa, California, with funding from Continental Realty Opportunistic Retail Fund I LP.
