Klein Enterprises, a diversified real estate developer, investor, and operator, has acquired the Southern Shores Marketplace, the Baltimore-based company announced yesterday.
According to a company release, an affiliate of Klein Enterprises purchased the 140,000-square foot shopping center on North Croatan Highway from the Charlotte-based Aston Properties, which recently undertook a significant redevelopment there, bringing in Marshalls, Rack Room Shoes, and Five Below leases.
The Marketplace Food Lion, which anchors the shopping center, is considered “high-performing” and was further incentive for Klein to “establish our footprint in the rapidly growing North Carolina market,” the release said.
Said Sean Garland, Klein’s chief investment officer: “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.”
According to the company’s release, the purchase deal was structured as an off-market transaction and facilitated by Berkeley Capital Advisors, with financing provided by TD Bank.
The acquisition represents Klein’s first asset in North Carolina and serves as the 1031 exchange replacement property for the company’s sale earlier this year of Deer Park Business Center, a nearly 170,000-square-foot office/flex center property in Randallstown, Md., outside of Baltimore.
Broadly stated, a 1031 exchange is the swap of one real estate investment property for another that allows capital gains taxes to be deferred. The properties must be considered “like-kind” in order for the Internal Revenue Service to recognize a tax deferral. The exchange derives its name from Section 1031 of the Internal Revenue Code.
According to The Daily Record, a Baltimore-based business and legal journal, commercial real estate owner/operator Fernau LeBlanc Investment Partners of Bethesda, Md., purchased Deer Park in April for an undisclosed amount.
The Marketplace acquisition is Klein’s 13th retail acquisition in the past two years, as the 75-year-old, fourth-generation company continues an active transaction and development period. The company currently has nearly 60 assets “comprised of over 6 million square feet including 3.5 million square feet of commercial properties and approximately 3,000 Class A multifamily units owned or in development,” the release said.
For more information about Klein Enterprises’ portfolio holdings and investment strategy, see www.kleinenterprises.com.
The Beacon, 9/20/23
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