Retail Properties of America, Inc. announced Tuesday afternoon that it has inked a deal to purchase the downtown retail/office section of One Loudoun in Ashburn.
According to the announcement, the gross purchase price is up to $163.1 million, based on certain performance thresholds.
Miller & Smith and North America Sekisui House, LLC developed the property. The first phase included 236,800 square feet of retail space and 105,200 square feet of office space and is nearly 90 percent under lease. The remaining phases, totaling 78,300 square feet of retail and 46,300 square feet of office, are under development and 71 percent leased.
The downtown area is the centerpiece of One Loudoun, which is a 360-acre mixed use development.
Among the tenants are Alamo Drafthouse Cinema, The Fresh Market, Matchbox and Uncle Julio’s Rio Grande Cafe.
“We are pleased with the opportunity to acquire One Loudoun Downtown, which demonstrates our ongoing ability to source compelling, high quality, strategically located retail assets in a very competitive investment environment,” stated Shane Garrison, RPAI’s executive vice president, chief investment officer and chief operating officer. “This acquisition augments our significant footprint in the Washington, DC, market and will allow us to leverage our local knowledge and considerable mixed-use experience to continue to transform the property into Loudoun County’s premier shopping and entertainment destination.”
It will be RPAI’s second retail property in Loudoun. The investment group owns Fort Evans Plaza II, the center along Fort Evans Road in Leesburg that includes Marshalls, Bed Bath & Beyond, Dollar Tree and Five Below.
“Miller & Smith and North America Sekisui House will continue to be the master developer of One Loudoun and we are excited for RPAI to join us in furthering the success of the project,” stated Bill May, vice president of Miller & Smith. “With their proven leasing and operating platform, RPAI will bring valuable retail expertise to the project that will ensure the continued vibrancy of One Loudoun as a whole.”
May stressed that he and the other partners remain committed to the project.
“We’re not going away. It’s just another day for us,” May said Tuesday. “We’ve accomplished a lot here and there’s a lot more to accomplish. … We’re in it for the long haul.”
May said the deal should benefit families living in One Loudoun and other county residents as RPAI can tap its connections with national retailers to strengthen the development’s downtown core in coming years.
“We think this deal will allow us to get to the next level,” May said.