Rockville-based Washington Real Estate Investment Trust (WRIT) (NYSE: WRE) has acquired a grocery store anchored shopping center that's 98.7% leased with an expected 6.7% first-year yield.
The Olney Village Center in North East Montgomery County is at the intersection of Georgia Avenue and Sandy Spring Road in the heart of Olney, Maryland.
Washington Real Estate Investment Trust bought the center for $58.0 Million.
With 199,000 square-feet, the retail strip is depended on by local residents in the rural/suburban area. 32 tenants occupy the center, including retailers, Shoppers Food Warehouse, T.J. Maxx, HomeGoods, andSunTrust Bank. Built in 1979, Olney Village Center went under an extensive renovation in 2003.
“We are pleased to announce the acquisition of Olney Village Center, a well-established grocery-anchored shopping center in an excellent location. The surrounding area has a stable, affluent consumer base with significant barriers to additional development. This is a great addition to WRIT’s retail portfolio and fits in with our stated strategy of investing in high quality retail properties in areas with strong demographics,” stated George “Skip” McKenzie, President and Chief Executive Officer of WRIT.
Washington Real Estate Investment Trust will back the purchase by a $22.6 Million mortgage at 6.37% interest rate due 2023. The remaining balance was paid with cash on hand and a credit line totaling $35.4 Million.