Cohen & Steers and DLC Acquire Open-Air Shopping Center in Fairfax County, VA

Rhea-AI Summary

Cohen & Steers (NYSE: CNS) and DLC have jointly acquired Springfield Commons, a 119,085 square foot open-air shopping center in Springfield, Virginia. Located 15 miles west of Washington, D.C., the property is currently 78% occupied by tenants including Pure Gym, Old Navy, Pure Hockey, and Staples, with expectations to reach 98% occupancy short-term. The center is shadow anchored by Virginia's most visited Home Depot.

The retail submarket shows strong performance with 96.9% occupancy and 3.3% year-over-year rent growth, exceeding national averages of 95.7% and 2.9%. Open-air shopping centers currently maintain their highest occupancy level in 16 years and were the best performing private core real estate sector in 2023.

Positive

• Current retail submarket occupancy of 96.9% exceeds national average
• Strong local rent growth of 3.3% YoY, above national average
• Property expected to reach 98% occupancy in short-term from current 78%
• Strategic location near major transit hub and affluent Washington D.C. suburbs
• Shadow anchored by Virginia's highest-traffic Home Depot

Negative

• Current property occupancy at 78% is below market average
• Significant leasing required to reach target 98% occupancy

News Market Reaction – CNS

-2.17%

1 alert

-2.17% News Effect

On the day this news was published, CNS declined 2.17%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, Oct. 30, 2024 /PRNewswire/ -- Cohen & Steers (NYSE: CNS) announced today that funds managed by the Private Real Estate Group of Cohen & Steers and DLC, an owner and operator of open-air shopping centers in the U.S., have jointly acquired Springfield Commons, an open-air community shopping center in Springfield, Virginia.

Springfield Commons is a 119,085 square foot shopping center located approximately 15 miles west of Washington, D.C. The center sits across from Springfield Town Center, a vibrant shopping destination that offers a mix of retail, entertainment, and dining options. This hub enhances the area's appeal as a strong retail node, attracting new housing and a hotel currently in development, which will further enhance the community. The property is shadow anchored by the most visited Home Depot in Virginia and is 78% occupied by tenants including Pure Gym, Old Navy, Pure Hockey, Staples and more. The property is expected to be 98% leased in the short-term.

As a suburb of Washington D.C., Springfield provides access to a major transit hub and strong employment prospects for its affluent population, as well as access to other notable suburbs including Alexandria and Arlington. The retail submarket is 96.9% occupied and has achieved 3.3% year-over-year rent growth, outperforming the national levels of 95.7% and 2.9% respectively¹. 

James S. Corl, Head of the Private Real Estate Group at Cohen & Steers, said: 
"We believe that valuations in the open-air shopping center sector are attractive, and the market is revealing compelling investment opportunities. We're excited to expand our partnership with DLC and leverage their operating experience to drive long-term value in Springfield Commons."

Open-air shopping centers are at their highest occupancy level of the past 16 years at 95.7% nationally and are the most highly occupied of any major commercial property type in the U.S. according to CoStar Group. Open-air shopping centers were also the best performing private core real estate sector in 2023 according to NCREIF. To learn more about Cohen & Steers' open-air shopping center investment thesis, please read our whitepaper: The Retail Renaissance has arrived in private real estate investing.

About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.

About DLC. DLC is one of the nation's preeminent private retail real estate companies, with expertise in acquisitions, development, architecture, leasing, and management. Headquartered in Metro New York, DLC has regional operations in Atlanta, Buffalo, Chicago, Dallas, and Washington, DC. For additional information about DLC and its portfolio, please visit www.dlcmgmt.com.

Website: https://www.cohenandsteers.com
Symbol: NYSE: CNS

¹ Source: CoStar 2Q24 Data as of 7/30/24

View original content:https://www.prnewswire.com/news-releases/cohen--steers-and-dlc-acquire-open-air-shopping-center-in-fairfax-county-va-302291691.html

SOURCE Cohen & Steers, Inc.

FAQ

What is the size of the Springfield Commons property acquired by Cohen & Steers (CNS)?

Springfield Commons is a 119,085 square foot open-air shopping center.

What is the current occupancy rate of Springfield Commons?

The property is currently 78% occupied, with expectations to reach 98% occupancy in the short-term.

What are the major tenants at Springfield Commons?

Major tenants include Pure Gym, Old Navy, Pure Hockey, and Staples, with Home Depot as a shadow anchor.

How does the local retail submarket performance compare to national averages?

The local submarket has 96.9% occupancy and 3.3% year-over-year rent growth, exceeding national levels of 95.7% and 2.9% respectively.