The Fairground Village shopping center in Westminster has been sold to Kohler Development Company for $4.5 million, according to an announcement from earlier this week.
The center, which is adjacent to Md. 97, includes a number of local businesses, ranging from a medical marijuana shop to a hair salon. It’s home to Sergio’s restaurant, Starry Night Bakery and Blue Bistro. Currently, the shopping center is 95% leased, according to a news release from Edge, the firm that brokered the sale.
Kohler, a Carroll County-based firm, purchased the 29,000-square-foot property from Oxford Realty Advisors, which is based in Potomac.
At this time, all tenants will remain in the shopping center, an Edge spokesman said in an email.
“This sales transaction was challenging based on the strong retail headwinds caused by the pandemic, but the existing retailers showed tremendous resiliency and entrepreneurial spirit to weather the storm for several months,” Joe Friedman, partner of capital markets at Edge, said in the news release.
The sale is part of what’s called a 1031 exchange, meaning Oxford will be able defer paying capital gains taxes on the property, as long as it purchases another “like-kind property” with the profit gained from the sale, according to the Internal Revenue Service.
“This asset was an ideal 1031 exchange property for the purchaser based on its long-term history of high occupancy, steady cash flow and a loyal tenant base comprised of local retailers,” Friedman said in the news release.