Southern Shores Marketplace has a new owner, as Baltimore-based commercial and residential real estate company Klein Enterprises closed Monday on the purchase of the 140,000 square foot shopping center from Aston Properties of Charlotte for $22.05 million.
The company said the acquisition represents Klein’s first asset in North Carolina and serves as the 1031 exchange replacement property for Klein’s recent sale of a 170-thousand square foot flex property in Maryland.
The shopping center along U.S. 158 anchored by Food Lion underwent a redevelopment over the past year that saw the addition of a Marshalls and Rack Room Shoes, with Five Below scheduled to open this fall.
“We’re incredibly proud of our team’s efforts to close this transaction, particularly in light of the complexities of today’s financing and transaction environment,” Daniel Klein, president of Klein Enterprises said. “We continue to believe in the long-term health and viability of grocery-anchored retail, and we’re excited to establish our footprint in the rapidly growing North Carolina market.”
The Marketplace is the seventh Food Lion-anchored property owned by Klein. Opened in 1986, the center also features a mix of retail and dining, and professional and medical office space.
Dare County tax records show DK Southern Shores LLC, an affiliate of Klein Enterprises, purchased the shopping center.
Total tax value of the property is $15,014,400, including the 18.1156 acre parcel valued at $6,034,700, the building at $8,756,900, and other improvements $222,800.
The purchase was structured as an off-market transaction and facilitated by Berkeley Capital Advisors, with financing provided by TD Bank, according to a press release.
“The acquisition of Southern Shores Marketplace achieves several important goals, including delivering stable cash flow with long-term leases from a blend of national and local tenants, along with manageable geographic expansion,” said Sean Garland, Klein’s chief investment officer.
This is the 13th retail acquisition in the past two years for the 75-year-old, fourth-generation company that has nearly 60 assets comprised of over six million square feet, including 3.5 million square feet of commercial properties and approximately 3,000 Class A multifamily units owned or in development.