Attracted to Cary’s high-income population, density and strong retail presence, a Washington, D.C.-based firm THE SIGMUND COMPANIES has made its first purchase in North Carolina.
The Sigmund Companies, a full-service commercial real estate investment firm, bought the Millpond Village shopping center off Kildaire Farm Road in south Cary for $24.5 million from Alidade Capital of Michigan.
Alidade paid $17.6 million for the property in 2020, according to deed records.
The sale included 84,373 square feet of retail space anchored by a Publix store (at 3480 Kildaire Farm Road) and an outparcel holding a Starbucks (Nasdaq: SBUX). When Berkley Capital Advisors started advertising the property for sale, Sigmund jumped on the opportunity to get a foothold in the Triangle market.
“If you're looking across the country in what we would consider the highest growth Southeast markets — which is a part of where we want to have investments — Cary is one of the top places on our list, so we’re just really proud,” Managing Partner Wright Sigmund said.
Other retailers at Millpond Village include Jersey Mike’s Subs, Bell Tan & Nails and Dollar Tree. Mech Cocina Mexicana opened in June at the shopping center. The retail space is occupied except for Brueprint Brewing Company’s former space. CBRE is marketing that space.
Wake Tech's Western Campus is next to the retail center.
“Our focus is really about convenience, necessity (and) retail, and we like to be in either high-growth or dynamic neighborhoods,” Sigmund said.
The McDonald’s (NYSE: MCD) and Chipotle (NYSE: CMG) buildings at the center were not part of the sale.
Built in 2000, Millpond Village’s retail center is on 48 acres and has a total assessed value of $17.61 million according to Wake County records.
The Sigmund Companies is two and a half years old and looking to invest in more shopping centers across the country. In addition to Millpond Village, Sigmund has four properties in Virginia, one in Washington, D.C., and one in Connecticut, according to its website.
The firm is eyeing other retail properties in Charlotte, Raleigh and Chapel Hill as it expands further into the state.
“This is really just the start of a lot more to come,” he said.
Sigmund is pursuing grocery-anchored centers, as well as centers with big-box space where the firm could bring in a grocer to focus on convenience and consumer goods.
“In different economic times, the shopper will continue to spend on these items, as opposed to discretionary items. And so we think it's a very solid investment, and it's proven that through many cycles,” Sigmund said.
Sigmund funded the acquisition through a Washington, D.C.-based institutional partner as well as debt through Lincoln Financial.
Alidade Capital has sold other properties in the Triangle recently, including One Park Center in Durham and two other buildings in Cary.
