DLC Acquires Royal Plaza Shopping Center in Front Royal

Royal Plaza in Front Royal has a new owner after DLC announced the acquisition of the 159,456-square-foot shopping center, adding another Virginia property to the company’s portfolio of open-air retail centers.

DLC announced the purchase Aug. 26, saying the acquisition was completed through its strategic investment partnership with Cohen & Steers. Financial terms of the transaction were not disclosed.

The shopping center, anchored by Martin’s grocery store and located along Front Royal’s busy commercial corridor, is currently 92% occupied.

According to DLC, the Martin’s location at Royal Plaza is the second-highest-performing store in the grocery chain. The center is also shadow-anchored by Rural King, whose Front Royal location is described by DLC as the retailer’s top-performing store nationwide.

DLC said those stores, along with the center’s other businesses, make Royal Plaza an important shopping destination for Front Royal, Warren County and the surrounding Shenandoah Valley.

“The best shopping centers aren’t getting easier to buy; they’re getting harder to find,” said Adam Ifshin, founder and CEO of DLC. “Royal Plaza is exactly the kind of asset we want to own: a dominant grocery-anchored center with exceptional retailers, proven performance and a strong position in its market.”

Ifshin said the company plans to build on the center’s existing performance through its leasing, asset management and property management operations.

“Our job now is to execute,” he said. “With our integrated leasing, asset management and property management platform, we will continue building on an already outstanding foundation.”

In addition to Martin’s, Royal Plaza includes a mix of national and regional businesses. Current tenants include Truist Bank, Bath & Body Works, Atlantic Union Bank, T-Mobile and Valley Health Urgent Care.

DLC said the combination of grocery, banking, health care, communications and other retail services gives the center a mix of businesses that serve the everyday needs of area residents.

The company also pointed to Royal Plaza’s regional location as a major factor in the acquisition. Front Royal sits near Interstate 66 and is served by Routes 522, 340, and 55, with access to Interstate 81 via the northern Shenandoah Valley.

DLC said the shopping center draws customers from a trade area extending about 30 miles.

Tourism also plays a role in the local economy. The company noted Royal Plaza’s proximity to Shenandoah National Park, which attracts approximately 1.7 million visitors each year.

According to DLC, the immediate trade area surrounding the center includes more than 28,000 residents, with average household incomes approaching $100,000. The company estimates annual consumer spending in the trade area at more than $1.08 billion.

Those figures, DLC said, were among the factors that made Royal Plaza attractive as a long-term investment.

“Royal Plaza has the fundamentals we look for: a strong location, quality retailers, and a customer base that prioritizes the center,” said Chris Ressa, chief operating officer of DLC.

Ressa said the purchase marks the beginning of the company’s work at the property, not the end of the process.

“The acquisition is only the starting point,” he said. “Our focus is on execution and finding opportunities to make a good asset even better over time.”

DLC described Royal Plaza as part of its strategy to invest in grocery-anchored and necessity-based shopping centers — properties where customers regularly visit for food, health care, banking, and other everyday needs.

Those types of retail centers have remained a significant part of the commercial real estate market as shopping habits have changed and more discretionary purchases have moved online.

For Front Royal, the acquisition brings one of the community’s established shopping centers under the ownership of a company with a large national portfolio.

DLC manages more than $4 billion in assets representing about 24 million square feet across more than 90 properties, according to the company. It is headquartered in Elmsford, New York.

The company operates an integrated business that includes property ownership and management as well as construction and design services through Renovo Construction and NWS Architects.

The Royal Plaza acquisition was made through DLC’s investment partnership with Cohen & Steers, a global investment management company specializing in real assets and alternative-income investments.

Cohen & Steers, founded in 1986 and headquartered in New York City, has offices in London, Dublin, Hong Kong, Tokyo and Singapore.

DLC said its investment in the portfolio was funded through its ongoing joint venture relationship with Temerity Strategic Partners.

The company did not announce immediate changes to Royal Plaza’s tenant lineup or redevelopment plans. Instead, its comments focused on maintaining the center’s current strengths while looking for opportunities to improve the property over time.

For shoppers, that means the center will continue operating with its existing mix of stores and services while DLC takes over ownership and management of the property.

The purchase also adds to DLC’s presence in Virginia as the company continues to target established open-air shopping centers with grocery stores and other businesses that draw regular customer traffic.

With Martin’s, Rural King, and a mix of banking, retail, and health care tenants already in place, Royal Plaza enters its next chapter with a new owner but an established role in the Front Royal retail market.