Cary, North Carolina
Wellington Park is a 103,000 square foot Lowe’s Foods anchored Shopping Center located in Cary, NC— a suburb of Raleigh, NC and within the “Research Triangle”. The center is located at theintersection of Tryon Rd and SE Cary Pkwy with combined traffic counts of approximately 45,000 vehicles per day. This robust area produced growing demographics in one mile radius of 8,750 people with incomes inexcess of $110,000. Despite the stellar demographics and strong intersection, both the center and theanchor tenant were in dire need of renovation and occupancy had recently slipped to only 76%.
PMAT acquired the center in an off market transaction from a large REIT in September 2013 at a significant discount to both the current basis and the cap rates of comparable centers sold in the area. During the due diligence period, PMAT negotiated with Lowe’s Foods to self-fund the remodel of their store in conjunction with PMAT’s renovation of the balance of the center and site. Within twelve months, PMAT was also able to garner new leases in excess of 18,000 sf to bring the occupancy to 92%.