Continental Realty Corp., on behalf of Continental Realty Fund V, L.P., has sold the Centre at Hagerstown, a 292,000-square-foot regional shopping center in Hagerstown, Md., for $36.3 million.
CRC purchased the shopping center back in 2019, as an investment through Fund V. Since acquiring the asset, the Baltimore-based company has sold nine out of 10 free-standing pad sites for $16.1 million, with an average cap rate of 5.4 percent. The total exit value, including the sale of the shopping center, has reached approximately $52.4 million—more than double the initial purchase price of $23.5 million.
JLL brokered the transaction on behalf of CRC. At the time of the sale, the shopping center was 97 percent leased. CRC brought the center’s occupancy 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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Anchored by Burlington, Crunch Fitness, Home Goods, Marshalls, PetSmart, Regency Furniture, 2nd & Charles and Party City and shadow-anchored by The Home Depot and a Walmart Supercenter, Centre at Hagerstown has a diverse mix of nearly 20 national and regional retailers.
Located at 17850 Garland Groh Blvd., Centre at Hagerstown is within the Washington County. The shopping center is near the intersection of Interstate 81 and Route 40, in an area where the daily traffic count reaches approximately 76,000 vehicles. Centre at Hagerstown serves more than 92,000 residents within a 5-mile radius, with the average household income surpassing $80,000, according to CRC.
A rapid expansion
Active in 11 states, with over $4 billion in assets under management, CRC has grown its shopping center portfolio by more than 3 million square feet since 2020. The company currently owns and manages nearly 9 million square feet of retail space, in addition to a multifamily portfolio exceeding 9,000 apartments.
Earlier this year—in its first Virginia purchase—CRC has acquired a 160,830-square-foot neighborhood shopping center in Richmond, through its Continental Realty Opportunistic Retail Fund I LP. ShopCore sold the asset for $22 million.
Last year, the company also entered the Southern California market with the acquisition of a 292,000-square-foot luxury retail center in Costa Mesa, Calif., using funds from the Continental Realty Opportunistic Retail Fund I LP.