LOS ANGELES – January 3, 2018 – The CBRE Strategic Partners U.S. Value 8 fund has acquired North Bethesda Market, a Class A, transit-oriented, mixed-use community featuring 182,926 square feet of retail, 411 apartments and a 1,205-space parking garage located in the Washington, D.C., metro area.
The asset is located at 11351 Woodglen Drive in North Bethesda, Maryland, in Montgomery County, a suburban infill submarket with strong demographics, excellent schools and diverse economic drivers. The property is walkable to the White Flint Metro Station, offering access to some of the area’s largest employers and downtown Washington, D.C., and is also proximate to major transportation arteries that provide excellent visibility as well as easy access throughout the region.
The retail portion of the property is 87.4 percent leased to a complementary mix of necessity retailers and experiential retailers/restaurants, most of which are either investment grade or national concepts/brands. These retailers attract a high daily shopper count and make North Bethesda Market a one-stop shopping and dining destination. With a unique floorplan, floor-to-ceiling windows and high ceilings which differentiate it, almost 14,000 square feet of this retail space could alternately be used as either creative office space or additional residential units.
The multifamily component, which is currently 96.8 percent leased, includes a condo-quality 24-story high-rise with 187 units and a six-story mid-rise with 224 units featuring high-quality unit finishes that can be further enhanced through upgrades to select interior components. The property features two rooftop swimming pools, a resident club lounge, a fitness center with cardio-theater, green rooftops with a lounge area, fire pits and covered parking.
The acquisition offers upside potential through the repositioning of both the apartment and retail components with updates to the mid-rise residential units, common areas, signage and lighting. The team will also implement CBRE Global Investors’ proprietary Inspired Lifestyle® service program to further complement the physical improvements. From a retail perspective, the team intends to implement CBRE best-in-class retail-focused management and leasing teams.
“As one of the historically strongest performing real estate markets in the country, Washington, D.C., is a focus market for this fund,” said Robert Perry, Principal and Portfolio Manager, CBRE Global Investors. “Montgomery County, in particular, has experienced significant and sustained population growth in recent years. Strong demographics and an evolving knowledge economy with abundant private-sector professional and high-tech jobs contribute to growing job prospects for the metro’s residents. Considering the mixed-use site, accessibility to transportation and desirable neighborhood, we believe North Bethesda Market will be very competitive.”
About CBRE Global Investors
CBRE Global Investors is a global real asset investment management firm with $98.3 billion in assets under management* as of September 30, 2017.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 75,000 employees in approximately 450 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real asset-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real asset-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real asset market, and its calculation of AUM may differ from the calculations of other asset managers.