Chesterfield Towne Center

Deal Type: Acquisition

Property Types: Retail

Investment Opportunity

CHESTERFIELD TOWNE CENTER

Richmond, VA

THE OFFERING

Newmark has been exclusively retained to market to qualified investors the opportunity to acquire Chesterfield Towne Center (the “Property” or “Center”), a multibuilding retail center in Richmond, Virginia. The total Property consists of 1,030,884 square feet of gross leasable area, situated on 81.6 acres. Included in the offering is the entirety of the enclosed mall portion which is anchored by JCPenney (145,770 SF), Macy’s (141,772 SF), At Home (109,933 SF), and T.J.Maxx/HomeGoods (52,000 SF). Additional retail components include Chesterfield Towne Center Plaza, a 62,875 square foot strip center occupied by Five Below, Men's Wearhouse, Ross, and Skechers as well as several outparcels occupied by Canastas Chicken, Carrabba's, ML Steak, and Kali Love.

 

Chesterfield Towne Center serves as the retail cornerstone for the affluent Chesterfield neighborhood. The Property is located at the intersection of Midlothian Turnpike / US-60 (50,000 VPD) and Huguenot Road, VA-147 (45,000 VPD) and is the largest enclosed mall in the Richmond area. Located 12 miles from downtown Richmond in a fast growing affluent suburb, the Property is considered the retail nexus within the trade area and is surrounded by national retailers and other commercial uses, in addition to a growing housing stock.

 

This offering represents a unique opportunity to acquire a well-located institutionally owned regional shopping destination at an attractive basis with numerous opportunities to add value.

INVESTMENT HIGHLIGHTS:

HIGH ECONOMIC GROWTH AREA

Chesterfield Towne Center is located in an affluent and fast-growing suburb in Chesterfield County. The Property trade area boasts a highly skilled workforce with income levels above the state and national medians. The trade area within a five-mile radius of the Property reports a median household income of $106,083, versus the median household incomes of both Virginia and The United States with values of $83,550 and $72,414, respectively. The higher median household income level correlates to the higher amount of discretionary income in the area. Overall, the Richmond MSA has been in expansion mode, with a variety of factors contributing to the economic growth.

 

$106,083 MEDIAN HOUSEHOLD INCOME

POSITIVE LEASING MOMENTUM

The Property has benefitted from positive leasing momentum recently. Over 48,290 square feet of new leasing has occurred in the past two years. Several new restaurant tenants including Canastas Chicken, Farm & Oak, Kali Love and ML Steak have been added to the exterior facing and periphery spaces. Within the in-line space, recently added tenants include Lids Locker Room, Rainbow, Pandora and Paris Jewelers, among others. The commitment from these new tenants to join the Mall speaks to the Property’s solid fundamentals.

 

48,290 SF OF NEW TENANTS

STRONG PERFORMING NATIONAL TENANTS

Average in-line sales at the Property have remained strong with key national tenants such as Bath & Body Works, ULTA, T.J. Maxx/HomeGoods and Victoria’s Secret all posting strong annual sales volume. The strength of the Property's overall sales is a testament to the Mall’s dominance in the trade area and an increasingly important barometer for judging the quality of a mall in a given market.

PLAZA & OUTPARCEL OWNERSHIP PROVIDES VALUE ENHANCEMENT:

The Property includes 82,599 square feet of peripheral real estate. The Offering includes Chesterfield Towne Center Plaza, a 62,875 square foot plaza outparcel along with four additional outparcels on the Mall side of the street. Chesterfield Towne Center Plaza is home to several other national tenants including Five Below, Men’s Wearhouse, Skechers and Ross Dress for Less. These outparcels and strip center tenants consist of apparel, discount, & dining tenants and generate over $1.3 million in annual rental revenue.

EXECUTABLE VALUE-ADD OPPURTUNITIES

There are a number of strategically accretive opportunities at the Property, which include the lease up of a turn-key restaurant space and the introduction of entertainment, grocery and additional lifestyle tenants to the Mall. Chesterfield Towne Center currently benefits from a unique tenant composition between the in-line, department store and lifestyle tenants such as At Home, Crunch Fitness, Macy’s, JCPenney, Ross Dress for Less and T.J. Maxx/HomeGoods, creating an expanded customer profile.

 

EXTENSIVE RENOVATION COMPLETED IN 2015

The interior of the Mall was extensively upgraded and renovated in 2015 with various cosmetic upgrades, and multiple new tenant build outs.

 

TOP TRAFFICKED SHOPPING CENTER IN THE STATE

Chesterfield Towne Center is a highly trafficked retail center that ranks in the top 3.0% of shopping centers in the state, drawing more than 5.8 million visitors over the last 12 months, according to Placer.ai.

NATIONAL MALL TEAM CONTACTS

LOCAL RETAIL MARKET CONTACTS

Thomas Dobrowski

Vice Chairman

212.372.0751

Thomas.Dobrowski@nmrk.com 

Katharine French

Managing Director

212.372.0736

Katharine.French@nmrk.com 

Mark Williford (VA Contact)

Executive Managing Director

720.454.0319

Mark.Williford@nmrk.com 

Mat Adler

Managing  Director

202.664.5912

Mat.Adler@nmrk.com 

FINANCING CONTACTS

Emily Sun

Analyst

212.372.2223

Emily.Sun@nmrk.com 

Blake Thompson

Vice Chairman

310.407.6519

Blake.Thompson@nmrk.com 

Henry Cassiday

Director

310.491.2064

Henry.Cassiday@nmrk.com