Federal Capital Partners (FCP) and Westmoreland Partners (WML) today announced the acquisition of Settler’s Market, a multi-use development at the intersection of State Route 199 and Monticello Avenue in James City County near Williamsburg, VA for $13.25 million. The acquisition from a bank’s REO portfolio was made through a joint venture between FCP and its retail affiliate, WML. Settler’s Market has an approved site plan for 349,890 square feet of retail and commercial space and 204 residential units, of which 47,826 square feet of retail space has been built and is presently home to tenants Trader Joe’s, BB&T, Baker’s Crust and others. All of the necessary retail-oriented site improvements have been completed. The project is strategically located at the dominant highway interchange in James City County/Williamsburg and is the gateway for the New Town Master Plan Development Corridor.
“Settler’s Market is a very promising site with a top location in the greater Williamsburg market and with all of the important infrastructure in place. It was in need of a new owner, developer, capital and vision to complete the center,” said FCP Managing Partner, Esko Korhonen. “We had the opportunity to purchase the site at a significant discount to in-place cost and will be working closely with representative agencies of James City County and the New Town Associates Design and Review Board to revisit the current site plan so that the project can maximize its potential.”
The acquisition of Settler’s Market is the second FCP transaction with Howard Biel and Drew Gorman of WML since the company announced an alliance with the retail veterans in fall 2010. This strategic alliance focuses upon purchasing attractive development and redevelopment opportunities in high barrier-to-entry locations, buying notes on troubled assets that are underperforming and which could benefit from repositioning, remerchandising, and/or redevelopment, and acquiring existing incomeproducing retail assets in prime markets throughout the Mid-Atlantic.
In 2010, FCP was one of the most active investment companies in the Mid-Atlantic region, investing more than $390 million in transactions that ranged from direct investment as a JV partner in a downtown office building, to the purchase of a note of a foreclosed retail center, and the funding through preferred equity and mezzanine capital for a multi-family residential development. FCP has acquired, or funded, close to $1 billion of real estate over the past two years through the company’s FCP Fund I, L.P., a co-mingled real estate private equity fund. The investments include multi-family residential, office and retail real estate in the Mid-Atlantic region.
About Federal Capital Partners
Federal Capital Partners (www.fcpdc.com) is a real estate investment company headquartered in Georgetown in Washington, DC. The Managing Partners include Esko Korhonen, Lacy Rice, Tom Carr and Alex Marshall. Since its inception, FCP has acquired more than $2.0 billion of real estate assets and debt across all property types.
FCP manages FCP Fund I, L.P., a $240 million co-mingled real estate private equity fund formed to invest in multiple real estate sectors in the Mid-Atlantic region with a focus on the metro Washington DC area. The Fund is able to provide both debt and equity capital as needed for real estate investments in the market.