GBT Acquires Discount Retail Center in Richmond Suburb
GBT acquires discount retail center in richmond suburb
Asset well-poisitioned in high-demand retail node in fastest growing county in MSA.
RICHMOND, Va. – GBT Realty Corporation, a leading national commercial development and investment company headquartered in Brentwood, Tenn., acquired Bermuda Square, a value-add retail center in Chester, Va., a high-growth submarket of Richmond. GBT purchased the property for $18.6M million on November 26 from Giant Food Stores, LLC who acquired it from Site Centers (previously DDR) in 2017.
“This asset is an ideal acquisition for GBT given its immediate upside potential, locational drivers and strong property fundamentals,” explains Scott Porter, managing director, Capital Holdings, GBT Realty. “We made significant progress in backfilling the existing anchor vacancy and solidifying tenancy for the undeveloped parcel during due diligence. We expect to add a few new names to our tenant line-up soon.” The six-acre pad is currently zoned to accommodate up to 66,000 sq. ft. of commercial development.
Located approximately 12 miles south of downtown Richmond, Bermuda Square sits on 14.65 acres less than half-mile from Interstate 95 at the “Main and Main” intersection of Jefferson Davis Highway/Route 310 and West Hundred Road/Route 10. The site offers the convenience of six access points with its primary entrance fully-signalized along Jefferson Davis Highway as well as a sufficient parking ratio. “Our repositioning strategy will transform this once neighborhood center into a value-oriented power center that feeds the demands of the surrounding community,” continues Porter.
The current tenant line-up for the 84,000-square foot Bermuda Square features Petco, Starbucks, Chipotle, SunTrust, Mattress Firm, Shoney’s, Virginia ABC and Valvoline, which is expected to open late summer. Currently, prior to development of the adjacent six-acre site; the former Martin’s Food Market anchor space is the only available unit and the largest contiguous box in the otherwise exceptionally tight South Chesterfield retail submarket. “This is a rare, fully-leased but for the anchor, retail opportunity with a development-ready, six-acre pad,” adds Porter. “It’s like this asset was ready-made for GBT’s expertise and our retail partnerships.”
Approximately 70,000 consumers with an average household income of $90,000 reside in the bedroom community of Chester making this site ideal for GBT’s targeted tenants. A major employment hub, a 900-acre tech park, is also located approximately five miles from the retail center adding significantly to the area’s daytime population. Looking beyond Chester, Richmond’s population of 1.25 million ranks the MSA as the third largest in the state with Chesterfield County the fastest growing county within the MSA.
The Capital Holding Division is seeking to build a $2 billion commercial real estate portfolio throughout the Southeast, Southwest and Midwest by 2028. Capital Holdings adds to GBT’s current business lines of Shopping Center, Net Lease and Diversified Development that, when combined, includes more than three million sq. ft. of commercial assets in 22 states.
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