American Commercial Realty Corp. today announced the purchase of Chesapeake Commons, a 198,741-square-foot shopping center anchored by Ross, Best Buy, Old Navy and Aldi located just east of Interstate-664 on Portsmouth Blvd.
“We are thrilled to have been able to acquire this dominant community center in a thriving part of the vibrant Hampton Roads market area,” said Rick Baer, President of ACR. “This is a key location in an active and growing corridor,” he continued, “with strong roots in the community. We believe Chesapeake Commons will remain the primary retail destination in the Western Branch for many years to come.”
“Chesapeake Commons is an ideal addition to our portfolio of quality shopping centers across the Mid-Atlantic, Midwest and Southern US markets,” noted Baer. “ACR specializes in providing superior management and dedicated focus to every one of our properties. In the case of Chesapeake Commons, we look forward to working with the local community and the existing merchants to expand the center’s mix of services and stores, improve its access and enhance its visibility and identity.”
"The anchor tenants, through lease extensions and store remodels, have demonstrated a long-term commitment to the market and to Chesapeake Commons", noted George Kleier, who oversees leasing and development for ACR. "The property is perfectly positioned in the Hampton Roads market to serve nearby residents and the larger community, particularly given the strong schools and robust residential growth in the area along with the exciting plans for the redevelopment of the mall property."
“In the immediate area surrounding Chesapeake Commons there are more than 3,100 residential units under construction or in the planning and development stages and nearly 300,000 residents within a 20-minute driving range,” remarked Morwin Schmookler, founder and CEO of Ironstone Partners, a full-service New York-based real estate investment firm that worked with Baer and ACR on the acquisition of Chesapeake Commons.
Chesapeake Commons was originally built in 1991 on 24 acres anchored by Walmart adjacent to the Chesapeake Square Mall. Walmart relocated across Portsmouth Blvd. to a larger building alongside a new Sam’s Club in 2005, allowing for a fresh tenant mix in Chesapeake Commons. The center continues to be anchored by strong national and regional merchants. In recent years key regional merchants such as Once Upon a Child, Lane Bryant, Plato’s Closet, America’s Best Optical and the 17th Street Surf Shop, as well as a variety of dining and service merchants, have expanded the shopping mix at the center.
"As the much-publicized retail landscape has shifted, a new wave of tenants, reflecting modern trends and combining the internet with a physical presence in our communities, has arisen and is expanding,” said Baer. “For many years, Chesapeake Commons has proven to be a successful retail destination. The existing retailers in Chesapeake Commons continue to prove this. We intend to continue partnering with our merchants to ensure their ongoing success.”
Added Kleier, “We are looking forward to identifying new concepts both from local operators and nationally expanding tenants that will further re-energize this established area." While nearly 90 percent occupied, there are current opportunities for new tenancy in the center.
ACR has a proven record of re-positioning retail properties in several major markets primarily in Florida and the Southeast US. Chesapeake Commons is their first Virginia acquisition, but "we hope it will be the first of several" according to Baer. He points to his company's success with redeveloping and re-energizing retail properties in other similarly sized communities such as Jacksonville, Florida.
ACR has selected Virginia Beach-based Divaris Real Estate as its local leasing representative. Under the leadership of its founder and community icon, Gerald Divaris, Divaris Real Estate represents numerous national retail and office tenants, while maintaining a leasing and management portfolio of nearly 31 million square feet of commercial property in the Mid-Atlantic and Southeast. Levi Thomson, senior vice president, will oversee retail leasing in Chesapeake Commons.
ACR, headquartered in Palm Beach Gardens, FL, is an experienced and opportunistic investor and operator of income-producing real estate properties throughout much of the United States, with an emphasis on open-air shopping centers. ACR and its affiliated entities own and/or operate more than 2 million square feet of properties. Its principals have more than four decades of experience in commercial real estate.
