Dealmaker: Regency, AvalonBay Pay $406M for Market Common Clarendon
Regency Centers Corp.Vienna, Va., and AvalonBay, Arlington, Va., acquired Market Common Clarendon in Arlington, Va. from TIAA Global Asset Management for $406 million.
The mixed-use property includes 300 Class A apartment homes, 300,000 square feet of retail anchored by Whole Foods Market, Apple, Crate & Barrel, Pottery Barn and Williams-Sonoma and an adjacent vacant building identified for future redevelopment. AvalonBay will acquire all the property’s residential components and Regency will acquire the retail other components. Regency contributed $285.7 million and AvalonBay contributed $120.3 million.
CBRE Capital Markets, Los Angeles, arranged the sale. R. William Kent, Chris Decouflé and Ryan Sciullo of CBRE’s National Retail Investment Group with William Roohan, Andrew Boyer, Michael Muldowney and Jonathan Greenberg of CBRE’s Multifamily Investment Properties team in Washington, D.C., represented seller TIAA Global Asset Management in the transaction.
“Market Common Clarendon promises to deliver long-term value enhancement with its combination of growing rents and high historical occupancy,” Kent said. “The opportunity to repurpose the office component will provide additional value enhancement for this urban mixed-use property.”
TIAA Global Asset Management Senior Director of Dispositions Lynette Pineda said her firm began acquiring the assets that comprise Market Common nearly 15 years ago. “We have significantly improved these assets and the sale allows us to rebalance of our portfolio and reinvest in the D.C. market, which has proven to be one of the most durable throughout economic cycles,” she said.
Barry Argalas, Senior Vice President of National Transactions for Regency Centers, said the combination of a dense, affluent and educated customer base and convenient access to the Clarendon public transit station contribute to its success. “Market Common is a seasoned and cycle-tested 10-acre urban shopping center that reflects our investment strategy of acquiring best-in-class properties in highly desirable markets,” he said.