Greenberg Gibbons said on Wednesday that it had purchased a Reisterstown shopping center for $35 million from Chesapeake Realty Partners, deepening the firm's presence in Baltimore County.
The Owings Mills-based real estate firm plans to redevelop the 11953 Reisterstown Road property, which dates to 1960, bringing in new tenants that can lift the shopping center to a "different level," said chairman and CEO Brian Gibbons. That's similar to the approach his firm is taking at the Shops at Kenilworth in Towson, where Trader Joe's is planning to relocate.
"It needs a facelift," Gibbons said of the Reisterstown property, which includes a Mars Supermarket, Planet Fitness and other stores.
Gibbons said his firm, which also redeveloped the nearby Foundry Row, is still examining the scope of its new investment, but the market remains strong for retail centers anchored by service uses such as gyms and grocery stores. He said he expects those two sites to complement each other and that his firm is considering further investments along the Reisterstown Road corridor.
"It's a great location," he said.
The Reisterstown Shopping Center, located off Franklin Boulevard, was part of a major suburban development with 4,000 homes and 800 rental townhomes led by Chesapeake Realty Partners in the late 1950s. But the 19-acre retail site needs significant capital and marketing investment to remain successful, said Josh Fidler, Chesapeake Realty's co-chairman and chief operating officer.
"We have always viewed our retail development and retail activities generally as ancillary to our work with residential realty," he said. "It was pretty clear that this investment really had run its course."
Chesapeake Realty tore down about 50,000 square feet of buildings after they became obsolete, which presents a redevelopment opportunity for the new buyer, though most of the existing space is filled with tenants, he added.