Verris Capital, Next Realty Grab Neighboring Retail Assets
- Feb 13, 2015
Last week’s market update reported Thalhimer Realty Partners Inc. and Rebkee Co.’s acquisition of Richmond’s Regency Square Mall. Now, news has surfaced that another retail property in the area has recently changed hands.
Richmond BizSense reported last week that a joint venture comprised of Verris Capital of Washington, D.C., and Illinois-based Next Realty purchased Stony Point Shopping Center and its Martin’s anchor grocery store in South Richmond for a total of $15 million. The deal, which closed on Jan. 30, represents the first entry into the Richmond market for both companies.
Verris Capital and Next Realty paid $5.7 million for the 37,949-square-foot Martin’s store from an entity controlled by the Ukrop family. The separate 72,719-square-foot shopping center was previously owned by a J.P Morgan-controlled entity and traded for $9.3 million. Eteri Zaslavsky, managing director of Next Realty, told Richmond BizSense that the shopping center was about 15 percent vacant at the time of the sale. Its tenant roster includes a Southbound restaurant, Gelati Celesti and Good Foods Grocery.
According to CBRE’s latest market report, retail activity was strong across the Richmond region at the end of 2014, with all primary markets posting positive net absorption. The market absorbed 83,488 square feet during the fourth quarter, driving vacancies down 29 basis points to 7 percent. In spite of this, Richmond’s average rent also declined, ending the year at $14.25 per square foot.
Investment activity also picked up at the end of 2014. The $72 million sale of Stony Point Fashion Park to Starwood Capital Group accounted for more than half of the $141.2 million in deals recorded in the fourth quarter.
Photo credit: CBRE