Cypress Bay Plaza in Morehead City just changed hands in a big way, with the 280,000-square-foot shopping center selling this month for $24 million to Baltimore-based Continental Realty Corporation. The deal puts a single investor in the driver’s seat for a sizeable slate of Southeast and Midwest retail centers, and has local merchants quietly wondering whether promises to boost occupancy will translate into fresh tenants and livelier storefronts.
Deal details
Continental Realty said it completed an off-market acquisition of a 14-property retail portfolio from U.S. Properties Group totaling more than two million square feet, according to a company press release from Continental Realty Corporation. The firm said the purchase pushes its shopping-center footprint to about 10.5 million square feet and lifts assets under management to nearly $5 billion.
"This off-market transaction showcases the depth of our industry relationships," Continental Realty said in the Continental Realty Corporation release, which notes that the portfolio spans seven states. Cypress Bay Plaza is listed among the centers acquired and is described as part of a collection that mixes grocery-anchored sites with big-box retail properties.
Property and local context
As reported by Triangle Business Journal, Cypress Bay Plaza sold for $24,000,000. Offering materials identify the center at 5167 Highway 70 W and show it totals roughly 280,000 square feet, with a Walmart among its anchors.
Where the portfolio fits
Industry reporting notes that the 14-center package closed roughly 93 percent leased and includes tenants such as Kroger, Hobby Lobby, Ross, Five Below and Harbor Freight, according to Commercial Property Executive. Coverage of the transaction lists CBRE brokers Chris Decoufle and Kevin Hurley as representing the seller. That tenant mix gives Continental a blend of steady grocery anchors and smaller specialty retailers that can be targeted in lease-up efforts.
What’s next for Cypress Bay
Continental Realty told Triangle Business Journal it aims to drive Cypress Bay Plaza to full occupancy, with leasing handled through the company’s retail operations team. How quickly those vacancies fill, and which brands sign on, will determine just how different Highway 70 looks to Morehead City shoppers in the months ahead.
