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Posted on: 22/12/2021

Plantation Point Shopping Center, located in Raleigh, North Carolina, is 91% leased and includes anchor tenants Burlington, BJs Wholesale Club, Big Lots, Dollar Tree and LA Fitness

Finmarc Management, Inc., a commercial real estate investment and management firm headquartered in Bethesda, Maryland, has entered the North Carolina market with its acquisition of Plantation Point Shopping Center, a 383,000 square foot shopping center located in Raleigh. The purchase price was $58 million. Plantation Point was 91% leased and occupied at the time of the transaction and features anchors Burlington, BJs Wholesale Club, Big Lots, Dollar Tree and LA Fitness. Bill Kent, Mike Burkard and Ryan Sciullo of CBRE represented the seller, and Finmarc Management was self-represented in this sales transaction.

Finmarc Management presently owns and manages a portfolio of more than six million square feet of commercial properties situated throughout Maryland, Washington, D.C., Virginia, Delaware, Pennsylvania and now North Carolina. The company intends to aggressively pursue new acquisition opportunities in North Carolina, with a goal of purchasing $200 million worth of commercial real estate assets over the next year.

Delivered in 2006 and situated on just over 53 acres, Plantation Point Shopping Center fronts Capital Boulevard (US Route 1), Old Wake Forest Road and Ruritania Street, and features roadside visibility from all three roads, as well as Interstate 540. The asset includes a mix of national and local retailers in the apparel, education, entertainment, financial, grocery, health and wellness, personal services and restaurant categories. The shopping center is approved for another 40,000 square feet of expansion space.

“We have been tracking the steady population growth and continued strength of the greater Raleigh area for several years, and identified the perfect asset for our entry into the market,” explained Finmarc Principal Neil Markus. “The underlying fundamentals of the central North Carolina region led by the expanding life sciences component of the Research Triangle, major companies such as Apple establishing an East Coast presence here, a highly-educated workforce and disposable income levels exceeding the national average properly positions the region for long-term success. In Plantation Point, we have acquired a well-maintained asset from a reputable institutional owner with a highly-diverse and Internet-resistant tenant roster. We intend to increase our holdings in North Carolina and the southeast portions of the country and this asset fits extremely well in our long-term acquisition strategy.”

Plantation Point services a primary trade area of approximately 575,000 residents over a ten-mile radius with an average household income exceeding $105,000. By 2025, the population is expected to rise to nearly 630,000 people (1.93% growth) and the average household income is projected to increase to $114,000. In addition, the greater Raleigh-Durham-Chapel Hill population is expected to grow 71% by 2030, which is the fastest rate than any other major metropolitan area in the United States. The center’s core market includes North Raleigh, Northeast Raleigh, Wake Forest and Rolesville.

A significant portion of the center’s tenancy is comprised of destination-oriented retailers, which draws consumers from a wide radius as benefitted by the adjacent highway system. More than 62,000 vehicles pass the site each day via Capital Boulevard, and more than 80,000 vehicles traveling along Interstate 540 drive by the center.               

“We believe the United States population will continue to shift towards areas with warmer climates, and the greater Raleigh-Durham region’s strong fundamentals makes it uniquely positioned to benefit from this on-going trend,” added Neil Markus. “The retail trade area encompassing Plantations Point contains few vacancies, a relative lack of new product and an economically-diverse and highly-robust business environment. Given the opportunity to complete the leasing program and add more space, we are extremely confident about our ability to create long-term value for this asset. We will continue to search for compelling opportunities in the North Carolina region, as well.” 

Joseph Hoffman and Aaron Rosenfeld of Kelley Drye provided legal services and Cliff Mendelson of Metropolis Capital Advisors assisted in arranging financing for Finmarc.                  

Finmarc Management, Inc. is a fully integrated commercial real estate company that focuses on real estate investment, management, leasing and development of retail, industrial/flex, and office properties throughout the Mid-Atlantic region. For additional information visit www.finmarc.com