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CB Real Estate is nearing completion of its investment thesis on 42 pad sites acquired from Silver Companies in Maryland and Virginia. The Baltimore-based firm, partnered with Artemis Real Estate Partners, redeveloped the assets to maximize value for investors after acquiring them in 2015. With two recent leases at Central Park, a super-regional power center in Fredericksburg, Virginia, nine pad sites remain, including two available for lease.

    "Our program to drive value in these net lease parcels is on track," said MCB Real Estate Principal Drew Gorman. "We employed a deliberate approach to identify ideal end-users and introduce under-served categories to the local community." In some cases, this involved demolishing and repositioning assets to achieve their objectives.

    Recent activity at Central Park includes leasing two pad sites to Silver Diner and Chase Bank, both of which began operations in late 2024. MCB Real Estate made a strategic decision to demolish and redevelop existing buildings to attract best-in-class retailers. A nearby site has been torn down for Starbucks Coffee, with potential future co-tenants.

    According to Silver Diner, their opening at Central Park generated one of the highest performances in company history. "Our team has executed six consecutive successful openings over the past two years," said Bob Giaimo, co-founder of Silver Diner. "This is our finest hour."

    Gorman noted that MCB Real Estate's revitalization efforts have transformed Central Park into a thriving retail hub, reflecting the comeback of the retail and restaurant categories. The firm's vision for reshaping pad sites has reaped impressive results.

    Pad sites continue to be in high demand, particularly those shadow-anchored by major shopping venues with drive-thru lanes. Gorman noted that there is a direct correlation between the success of adjacent shopping centers and complementary pad sites. The interest in 3,000 to 5,000 square foot spaces is gaining momentum.

    "The use of pad sites has evolved, driven by on-the-go consumers accessing food and services without leaving their vehicles," said Gorman. "The right end-user can significantly impact a center's dynamics." MCB Real Estate's parcelization of the portfolio maximized its value, demonstrating their capabilities as experienced retail investors and operators.