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REA
July 05, 2017  

Carlyle Offers Northern Va. Lifestyle Center

A Carlyle Group partnership is marketing a mixed-use complex in Northern Virginia that could fetch $315 million from core-plus investors.

The 1.2 million-square-foot Village at Leesburg, in affluent Loudoun County, is a “live-work-play” development centered around a grocery-anchored lifestyle center. It encompasses 551,000 square feet of retail space, 120,000 sf of Class-A offices, 335 apartments and a parcel that can accommodate an additional 60 residences. CBRE has the listing.

Although bids are invited for the entire complex, the apartments, which account for about a third of the value, could be sold separately as a condominium interest. The apartments and office space are above the shops and restaurants in a pedestrian-friendly layout.

Washington-based Carlyle and its partners spent a reported $270 million developing the complex, which was completed in 2010. Carlyle worked with Kettler of McLean, Va., on the multi-family and office components, and with Dallas-based Cypress Equities on the retail portion.

At the estimated value, Village at Leesburg would provide an initial annual yield of 5.5-5.8%. The marketing campaign, which kicked off in the past few weeks, is emphasizing the potential to boost income by leasing up vacant space and developing the additional apartments.

The biggest opportunity would be to boost the 90% occupancy rate of the retail space. Grocer Wegman’s anchors the lifestyle center in a 145,000-sf store, while Cobb Movie Theatre is currently expanding from 12 screens to 16 and installing luxury, reserved seating. LA Fitness occupies 45,000 sf.

Bowlero, an upscale bowling and entertainment chain, announced this year that it is taking over a bowling alley at the property, illustrating how the management is emphasizing “experiential” retailers. The 70 retail tenants include Ulta and restaurants Smokehouse Live and Travinia Italian Kitchen.

The apartments and the office space at the property are each 96% leased. Tenants at both are drawn by the urban atmosphere, which makes the complex distinct from nearby properties, investors have been told.

Village at Leesburg is at 1602 Village Market Boulevard SE. It's along Route 7, where some 80,000 vehicles pass each day, and five miles from the Dulles Greenway (Route 267). Some 136,000 people with an average household income of $144,000 live within five miles. The population is forecast to grow 11% in five years, on top of the 40% increase that Loudoun County has seen since 2000.