In 2015, Buligo Capital acquired its first grocery-anchored retail property, an 86K SF shopping center situated in Durham, North Carolina. The shopping center, anchored by Food Lion and Dollar Tree, represented a value-add opportunity through the lease-up of 4,400 SF of vacant space and rent increases.
The property is located half a mile from Research Triangle Park, home to top-tier research universities and a corporate presence focused on life sciences and technology. It is the largest such park in the U.S. with over 39,000 workers and 170 companies. The prime location is directly accessible via Interstate-40 and other regional highways.
Parkwest Crossing was sold at a higher IRR than anticipated after a little more than 7 years, during which management was able to preserve a strong occupancy rate of above 95% and at certain periods, 100%. The success of the deal reflected Buligo’s retail investment focus on high-quality, grocery-anchored properties with e-commerce resistant tenants and solid growth potential.