Northwood Investors has sold Waverly Place, a 190,000-square-foot retail center in Cary, N.C., to Hines Global Income Trust for $88.5 million, according to public records. The sale price marks a 33.7% increase in the asset’s value since it last changed hands for $66.2 million in late 2014.
Located on 22.5 acres at 302 Colonades Way, the retail center opened in 1988. Anchored by Whole Foods Market and Cinébistro, the four-building property is also home to a number of other tenants including Shake Shack, CorePower Yoga, and Drybar. The asset, last renovated in 2000, also contains 16,000 square feet of office space.
Hines’ Paul Zarian, managing director, noted that the REIT plans to secure new, “key” retailers for the property in the near term to add to the strong, long-term tenants already in place.
Though many investors see brick-and-mortar retail as a relic of the past, thanks in no small part to the enormous growth of e-commerce, the sector still has a strong investment upside — though this is certainly not true of all retail commercial real estate.
In recent years, a push toward experiential retail has buoyed occupancy at many shopping centers, and neighborhood grocery-anchored assets have also performed well. Hines’ latest acquisition appears to cover both bases, given its tenant mix, and the REIT has given a nod to expanding events on-site as a way of cementing a strong user base within the Cary submarket.