June 15, 2022
Continental Realty Corporation Acquires 330,000 Square Foot Grocery-Anchored Lifestyle Center in Atlanta, Georgia for $97 Million
Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has acquired The Shoppes at Webb Gin, a 330,000 square foot lifestyle center located in the Atlanta market for $97 million from Olshan Properties. The asset, located at 1350 Scenic Highway South in Snellville, was 89 percent leased at the time of the transaction, and represents CRC’s fourth retail asset in Georgia. The property is anchored by Sprouts Farmers Market, DSW, Barnes & Noble, and H&M. Margaret Caldwell and Patrick Kelley of Stan Johnson Company of Atlanta represented the seller in this transaction.
The Shoppes at Webb Gin was purchased on behalf of the Continental Realty Opportunistic Retail Investment Fund I, a private equity fund focused on acquiring value-add and income-producing retail properties in targeted submarkets throughout the United States. This represents the fourth retail asset acquired by the Fund, following last month’s acquisition of Banks Crossing, a 255,101 square foot center located in Fayetteville, Georgia.
Additional CRC retail centers located in Georgia include North Bridges, a 106,396 square foot neighborhood shopping center in Alpharetta, and Summit at Towne Lake, a 59,722 square foot retail center in Woodstock. CRC also owns two multifamily communities in Georgia, Millworks Apartments in Atlanta, and Two Addison Place in Pooler.
Constructed in 2006, The Shoppes at Webb Gin is situated on approximately 48 acres on Scenic Highway North, the major freeway which connects Snellville to Lawrenceville, with more than 40,000 vehicles passing the site daily. The regional center is home to more than 60 tenants, including national retailers Sprouts Farmers Market, DSW, Sephora, Barnes & Noble, Bath & Body Works, H&M, Chico’s, Kay Jewelers, Loft, Sunglass Hut, Victoria’s Secret and White House Black Market. Several sit-down and fast-casual restaurants are located at The Shoppes at Webb Gin, including Bonefish Grill, Chili’s Grill & Bar, Longhorn Steakhouse, Red Robin, Wild Wing Café and Ted’s Montana Grill.
Located at the intersection of Scenic Highway N and Webb Gin House Road SW, The Shoppes at Webb Gin is in the 94th percentile for foot traffic among all shopping centers in the country, with over 80 minutes of average dwell time and the #1 most visited Sprouts Farmers Market in Georgia, according to Placer.ai, a market research company that reports on consumer behavior by analyzing visitations in retail stores and shopping centers.
The Shoppes at Webb Gin value proposition
“The Shoppes at Webb Gin is an institutional quality grocery-anchored lifestyle center strategically located in a high-growth suburb of Atlanta with long term opportunity to add value,” stated Josh Dinstein, Senior Vice President, Acquisitions for Continental Realty Corporation. “It offers significant differentiation in the market as the only lifestyle center within 18 miles, with no new supply coming to the market. Through our long-term relationship with the Seller, we were able to structure a completely off-market transaction to acquire the center. The barrier to entry for new retail projects in the area is extremely high which only increases the value and attractiveness of the asset. This continues to be the dominant retail center serving the Snellville community, with the majority of tenants achieving sales performances surpassing pre-COVID levels,” Dinstein added.
Robust population and economic growth trajectory of Atlanta MSA
The Georgia Department of Economic Development recently released a report detailing the creation of more than 35,000 new jobs in the state over a nine-month period ending March 2022, representing a 48 percent increase over the previous fiscal year. Key sectors driving this increase include automotive, advanced manufacturing, logistics and distribution, software and technology, and food processing industries.
Recognized as the ninth largest metropolitan region in the United States, Atlanta is projected to add more than 2.5 million residents by 2030, the highest projected growth for any Metropolitan Statistical Area (MSA) in the country. Atlanta also ranks first nationally for economic growth potential, according to Business Facilities magazine, and the areas 5 percent year-over-year job growth compares favorably with the national average of 3.9 percent.
More than 68,000 people reside within a three-mile radius of The Shoppes at Webb Gin, with average household incomes approaching $110,000. Since 2010, the market trade area has achieved 9 percent population growth, and an additional 7 percent population growth is expected over the next five years.
Major employers in the area include Delta Airlines, Emory University and Healthcare, The Home Depot, and Piedmont Eastside Medical Center.
“When evaluating potential retail shopping centers for purchase, CRC’s extensive due diligence process involves a thorough evaluation of key fundamentals impacting the immediate trade area, the strength of the existing tenant roster, expected job and population growth, the potential to generate substantial value, and nearby competition,” said JM Schapiro, CEO of Continental Realty Corporation. “The Shoppes at Webb Gin fulfills every important criterion for this highly-differentiated asset to function as a quality long-term investment in our expanding portfolio, and we were able to acquire the asset at below replacement cost.
“We continue to be drawn to the Southeast given the current trend and long-term projections of population and job growth,” Schapiro continued. “The greater Atlanta and Gwinnett County metropolitan region, is positioned for sustained expansion, with fundamentals led by a favorable climate, lower costs of business operation, and lower cost of living, which have continued the influx of new residents. Our Georgia-area retail properties have outperformed, providing us with sustained confidence in the marketplace. The Shoppes at Webb Gin presents another chance to execute CRC’s proven value-add strategy to position this asset to deliver solid risk-adjusted returns to our investor group.”
Headquartered in Baltimore and founded in 1960, Continental Realty Corporation is a full-service commercial real estate and investment company focused on acquiring and operating retail and multifamily properties. The privately-held firm owns and manages a diversified portfolio of retail centers consisting of more than five million square feet of commercial space and over 9,000 apartment homes across ten states, with a portfolio value exceeding $3 billion. For additional information, visit www.crcrealty.com.
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