Outside the Region: Heidenberg Properties/SREP JV acquires Potomac Marketplace – $35.9 million

Ranson, WV A joint venture partnership between Heidenberg Properties Group and Strategic Real Estate Partners (SREP) has acquired The Potomac Marketplace for $35.9 million.  

The property is a 370,000 s/f shopping center anchored by a 61,000 s/f Weis Supermarket, a 122,000 s/f Home Depot, an 88,000 s/f Kohl’s, and a 15,000 s/f Petco. The center is 92% occupied and has 51,000 s/f of inline store space and outlots, which offer an array of popular restaurants including Panera Bread, Dunkin’ Donuts, Glory Days Grill, California Tortilla, Roy Rogers, and John’s Café.  

Located along Rte. 9 (17,600 VPD) with 2,250 ft. of frontage, The Potomac Marketplace is by far the dominant retail presence in the Ranson and Charles Town trade area (which includes historic Harpers Ferry). Rte. 9 has become the major retail corridor in the region with the next closest hubs located over 15 and 20 miles away in Martinsburg, West Virginia and Winchester, Virginia respectively.  Route 9 connects the eastern panhandle of West Virginia with Leesburg, Virginia and the Dulles Technology Corridor just 40 miles southeast of the center. Regional access is provided just two miles south of the center by US Route 340, which connects the city to Frederick, Md., 28 miles to the east. Routes 9 and 340 also provide convenient access to Interstates 81, 270, and 66. This network of highways has played an important role in the trade area’s recent and continuing growth. 

Robert Heidenberg, president and CEO of Heidenberg Properties, stated, “In acquiring The Potomac Marketplace, we obtained yet another grocery-anchored shopping center in the best location in the market. The presence of Home Depot and superior performing restaurants enhances the tenant mix and provides shoppers additional reasons to visit this center. We believe that we are adding The Potomac Marketplace to the portfolio at the right time, as the trade area is poised to take advantage of catalysts for housing growth.”  

The population in the trade area has expanded significantly since 2000, growing 35.6% to 31,700. Moreover, the ratio of household incomes (average: $77,042) to home values (median: $222,000) provides a customer base with significant discretionary income. Demand for housing is being fueled both by commuters seeking more affordable housing options and by jobs being created in the immediate area. Notably, the U.S. Customs and Border Security Advanced Training Center in Charles Town is expanding and Proctor & Gamble is constructing a 1.2 million square foot manufacturing facility in Martinsburg, which will reportedly hire 700 new employees by 2019.  

This acquisition marks the joint-venture partners’ sixth acquisition overall and the third since November 2016.