Investment of nearly $1 million in 280,000 square foot shopping center focusing on exterior upgrades yields significant leasing results approximately 18 months following asset purchase
Finmarc Management, Inc., upon its acquisition of the 280,000 square foot Largo Town Center last year, immediately initiated a nearly $1 million property upgrade strategy that - approximately 18 months later - has yielded significant results highlighted by the September 10 expected opening of the 35,000 square foot Burlington store. The Bethesda, Maryland-based commercial real estate firm also signed leases with Foot Locker, which recently opened and Rock & Toss Crab House, a fast-casual restaurant that is expected to open this fall. Finmarc credits its award of nearly $350,000 from the Prince George’s County Commercial Property Improvement Program (CCIP), which enabled the firm to proceed with the upgrades, as a major reason for this recent leasing success. The company acquired the asset, located in the Upper Marlboro section of Prince George’s County, in January 2019 for $43.95 million.
Formerly known as Burlington Coat Factory, the retailer rebranded several years and shortened its name to reflect its de-emphasis on outer wear, Burlington now operates 651 locations throughout 45 states and Puerto Rico, Burlington offers branded product in women’s ready-to-wear apparel, menswear, youth apparel, baby products, footwear, accessories, home goods and coats.
Foot Locker is an international retailer focusing on athletic footwear which currently operates more than 7,200 stores throughout 12 countries with combined sales exceeding $6.6 billion. Rock & Toss Crab House is a locally-owned restaurant specializing in authentic-seasoned seafood including crab and shrimp dishes. The concept also maintains locations in Bowie and Owings Mills.
The Finmarc property improvement program at Largo Town Center included the installation of state-of-the-art light emitting diode (LED) lighting throughout the parking lot, the milling and repaving of the parking lot and the façade enhancement of the former 70,000 square foot Regency Furniture store space that is being backfilled by Burlington. A 35,000 square foot space remains available for lease.
“Competition for compelling new retail uses in the Prince George’s County region remains fierce, so it is extremely important to maintain a first-class environment to provide differentiation among the available shopping venues,” explained Sean Sullivan, Vice President, Finmarc Management. “The CPIP funding mechanism is extremely unique and we believe it provided the critical advantage that enabled us to attract three new uses, highlighting by Burlington, which provides a new anchor and destination tenant for the center. Further, it is an excellent example of the use of a public program to incentivize landlords to invest in their property for the betterment of the entire community.”
Located at 950 Largo Center Drive, Largo Town Center is anchored by national retailers Burlington, Marshalls, Shoppers Food Warehouse, Advanced Auto, and Dollar Tree and contains 35 tenants representing a mix of fast-casual and sit-down restaurants, as well as retailers offering products, and business and consumer services. The shopping center is positioned adjacent to MD Routes 202 (Landover Road) and 214 (Central Avenue) and is less than one mile from an Interstate 495 (Capital Beltway) exit.
“The Prince George's County Redevelopment Authority's CPIP program has supported facade improvements in 15 shopping centers, but none compare with the dramatic impact thatthe Redevelopment Authority’s grant to Finmarc had on the redevelopment of Largo Town Center,” stated David Iannucci, President & CEO of the Prince George’s County Economic Development Corporation. “The Economic Development Corporation is thrilled to see this public support for Finmarc's private investment keep a productive retail complex updated and thriving in the midst of what is a time of unprecedented challenges in the commercial marketplace. The RDACPIP has achieved exactly what was envisioned.”
Over the course of the two-year old CPIP Grant Program, $2.8 million has been contributed to Prince George’s County-area shopping centers.
“The shopping experience at Largo Town Center has been substantially improved over the past 18 months with the upgrades in the physical plant and tenant roster, and we are extremely optimistic about the prospect to lease the remaining 35,000 square feet of space,” Sullivan added. “Among the strengths of the center is the exceptional daytime population nearby, due to the presence of stable and dense neighborhoods nearby and the new University of Maryland Regional Medical Center.”
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. The firm presently owns and manages a diverse portfolio encompassing nearly 6.6 million square feet of commercial properties located in Maryland, Washington, D.C., Virginia, Delaware and Pennsylvania. For additional information, visit www.Finmarc.com
