DLC, Meadow Partners Make $69M Retail Investment
The highest-trafficked Shoppers Food Warehouse anchors this shopping center.
![Penn Mar Shopping Center](https://www.commercialsearch.com/news/wp-content/uploads/sites/46/2024/08/Penn-Mar-Shopping-Center.png?w=1024)
DLC and Meadow Partners have acquired Penn Mar Shopping Center, a 378,205-square-foot, grocery-anchored shopping center located inside Washington, D.C.’s Capital Beltway. The previous owner was MEPT, according to CommercialEdge information.
The Forestville, Md., asset changed hands in a $68.5 million, off-market transaction. Apollo and Athene provided acquisition financing.
DLC now owns more than $250 million of open-air retail in the southern portion of Prince George’s County.
Anchored by a grocery store
Completed in 1960, Penn Mar was 91.5 percent leased at the time of sale. It is anchored by the highest-trafficked Shoppers Food Warehouse, which recently completed a 10-year renewal and a full store renovation. Other national anchor tenants include Burlington, Ross Dress for Less, Dollar Tree, Petco and Foot Locker.
The property also features eight single-tenant pad sites, home to Starbucks, Truist Bank, Taco Bell, Raising Cane’s, IHOP, Wendy’s and Long John Silver’s.
READ ALSO: As Grocers Grow Faster, Investor Interest Heats Up
Penn Mar is in Prince George’s County, less than 10 miles from downtown Washington, D.C. The shopping center has an average household income of $95,430 and a population of more than 95,000 within a 3-mile radius.
DLC has been an owner/operator in Prince George’s County for more than 20 years. The acquisition of Penn Mar complements an existing portfolio of three grocery-anchored and value-oriented retail assets totaling more than 658,000 square feet.
The firm benefits from a growth capital commitment provided by Temerity Strategic Partners. In December 2023, TSP and DLC launched a venture aimed at enabling the latter to double its portfolio size by 2025.
Shoppers drawn to ‘all-in-one’ setup
Josh Schrier, executive vice president & CIO at PREIT, told Commercial Property Executive that shoppers are now drawn to dynamic, multi-use properties where they can shop, dine, play and stay all in one place.
“In a densely populated market with a great consumer base and thousands of new housing units developed recently, demand for space has been steadily increasing, suggesting a strong investment opportunity,” Schrier said.
On the other hand, open-air shopping centers experience the highest purchasing demand, combined with the least availability from sellers. Despite financing conditions remaining tight, pricing hasn’t softened, due to strong investor interest.
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