3-29-2024 4:36am

REISTERSTOWN RD. PLAZA

Local Buyer Makes the Difference in Deal for Reisterstown Road Plaza

Sale/Acquisition of the Year for Baltimore

The sprawling retail and office complex has been a staple of the Baltimore region since the 1960s. (CoStar)

By: Dan Beyers, CoStar News

It can be tricky these days finding a buyer for a shopping mall, certainly one as large as Reisterstown Road Plaza in north Baltimore.

But Kite Realty — who took ownership of the property after merging with Retail Properties of America in 2021 — didn't have to look far for a willing taker.

Tide Capital Realty, a privately owned real estate investment firm based nearby, recognized the retail center's long-standing community ties and snapped up the property for $48.25 million in a transaction judged worthy of a CoStar Impact by real estate professionals familiar with the market.

The sprawling retail and office complex has been a staple of the Baltimore region since the 1960s. It's home to tenants as varied as the grocers Giant Food and Shopper's World, hardware giant Home Depot and department store Burlington as well as multiple state agency offices. Many smaller retailers inside its 50,000-square-foot enclosed shopping space were on month-to-month or expiring leases, requiring the new owner to understand the challenges and opportunities for the property.

"Having purchased shopping centers in a prior life, I am aware of the twists and turns (difficulty) of these transactions. Scale amplifies everything," wrote Owen Rouse, an Impact Award judge and vice president of investment sales at MacKenzie Commercial Real Estate .

About the Property: The 800,000-square-foot mixed-use complex was 80% occupied at the time of the sale.

What the Judges Said: "It is much more difficult to sell a property when you don't have a list of prospects banging down the door, such was the case with this property. The entire process to complete this transaction appeared 'hairy,' for a lack of a better word with numerous moving parts. Furthermore, the need to find a buyer who understood the market and community and is willing to take on the various challenges around leasing makes the acquisition even more impressive," wrote Terri Harrington, managing principal for Harrington Commercial Real Estate.

They Made It Happen: Mat Adler, managing director, and Sean Feldman, senior analyst, for the listing broker Newmark.

Senior market manager Nina Thilert contributed.