JLL Closes $58M Sale and $35.95M Financing for Harris Teeter-Anchored Retail Real Estate Asset in Falls Church, Virginia
JLL announced June 5 that it has closed a $58.025 million real estate acquisition and arranged $35.95 million in commercial real estate financing for Barcroft Plaza, a 113,173-square-foot neighborhood shopping center in Falls Church, Virginia. The transaction marks the first Mid-Atlantic acquisition for buyer 11North Partners.
Deal Structure and Commercial Real Estate Financing Terms
JLL represented the seller, Federal Realty Investment Trust, in the disposition. The firm also worked on behalf of the buyer, 11North Partners, in arranging the five-year acquisition loan through Bank of America, N.A. The $35.95 million loan implies a loan-to-value ratio of approximately 62 percent against the $58.025 million purchase price.
At 113,173 square feet, the transaction equates to roughly $513 per square foot. The deal was led by JLL Capital Markets Managing Director Jordan Lex and Senior Director Danny Naughton on the investment sales side, while Managing Director Chris Knight and Senior Director Evan Parker arranged the financing.
"Barcroft Plaza is exceptionally well-positioned within one of the nation's wealthiest and most stable markets," said Lex. "The property's strong grocery anchor performance, credit tenant profile and limited capital expenditure requirements made it an attractive acquisition for institutional buyers."
"We are extremely excited that Barcroft Plaza has become 11North's first asset in the Mid-Atlantic, further solidifying the region as a desirable market for institutional capital to be deployed in," added Naughton.
Property Overview: A Grocery-Anchored Retail Asset in Fairfax County
Barcroft Plaza is located at 6345 Columbia Pike at the intersection with Lincolnia Road, inside the I-495 Beltway in Fairfax County — which JLL describes as the fifth wealthiest county in the United States. The property sits on 9.91 acres and includes 529 parking spaces. Originally constructed in 1960, the center underwent a renovation from 2017 to 2019.
The shopping center is anchored by a Harris Teeter grocery store and is 96 percent occupied. Its national tenant roster includes Starbucks, Bank of America, and 7-Eleven, with credit tenants accounting for 38 percent of rental income. More recent additions — Honeygrow, Taco Zocalo, and Playful Pack — have collectively contributed to a 29 percent increase in base rent.
The property benefits from traffic counts of 20,700 vehicles per day on Columbia Pike and 12,500 vehicles per day on Lincolnia Road. The surrounding trade area within a three-mile radius has an average household income of $144,919 and a population exceeding 221,000 residents. The center also provides access to major employment nodes including Tysons Corner, Amazon HQ2, the Pentagon, and downtown Washington, D.C.
Seller and Buyer Profiles
Federal Realty Investment Trust, an S&P 500 real estate company founded in 1962, focuses on the ownership, operation, and development of retail properties in densely populated, affluent communities. The REIT's portfolio spans grocery-anchored shopping centers and large-scale mixed-use properties across eight major U.S. markets. Federal Realty holds the longest record of annual dividend rate increases among U.S. REITs, according to the company.
11North Partners, the buyer, is a retail-focused real estate investment firm with institutional partners including Bain Capital. The company describes its strategy as centered on market-leading retail assets diversified across geographies and formats, with an emphasis on quality and long-term value creation. The Barcroft Plaza acquisition represents 11North's entry into the Mid-Atlantic region, according to JLL's announcement.
Transaction Context
JLL Capital Markets, which arranged both the sale and the acquisition financing, operates with more than 3,000 specialists across offices in nearly 50 countries. The firm provides investment sales and advisory, debt advisory, equity and fund placement, and related capital markets services to real estate investors and occupiers globally.