Morganton Heights shopping center hits market for $36 million

One of the largest regional shopping centers in the area is up for grabs, but it will set you back $36.2 million.

Morganton Heights – with big-name stores like Belk, Dick’s Sporting Goods, PetSmart, T.J. Maxx, and Staples – went on the market earlier this week. According to lead listing agent CP Partners, the complex has nearly 285,000 rentable square feet over 61.26 acres. The parking lot has 1,338 spaces. The center, built in 2013, is located off West Fleming Drive between Carbon City Road and Burkemont Avenue.  

Walmart, to the immediate west, is not part of the complex. Also not part of the sale are establishments fronting West Fleming Drive: Buffalo Wild Wings, Sam’s Xpress Car Wash, Murphy Oil, Applebee’s, Panera Bread, Aspen Dental, UNC Health Blue Ridge Urgent Care, and Mavis Tires & Brakes.

The shopping center boasts a 94% occupancy rate with 86% filled by national retailers. A recent inventory of the complex showed only five vacant storefronts. The largest vacant space is the former Rue 21, which closed in May amidst corporate bankruptcy. New tenant Wingstop opened at about the same time in the former location of Hwy 55 Burgers. 

Burke County records show ARG MHMORNC001 LLC is the current owner of the property, which covers three separate parcels. ARG purchased the properties in 2022 for just over $36.2 million. WRS Property Management LLC handles operations and leasing. WRS lists an expansion retail pad next to Staples that could accommodate a retail store of up to 12,000 square feet. 

Placer.ai, a foot traffic data software company, estimates Morganton Heights receives more than 5 million visitors annually, a ranking in the top 25% of power centers in the state. The center attracts customers from throughout the region. 

The listing offers these additional highlights:

• Belk is a separately parceled ground lease, and is paying $2.75 per square foot.

• TJ Maxx is in its first of four options, and has a scheduled 12.9% rental increase on Nov. 1, 2028 (start of Option 2).

• Five other retailers are also in their first options: Ross, Dick’s, Jo-Ann Fabrics, Dollar Tree, and PetSmart.

• Several stores have recently extended their leases: Staples, Verizon, GNC, AT&T, and China King.

• Nails R Us recently expanded its store into the adjacent suite and extended its term.

Whoever becomes the new owner will have to deal with a major inconvenience: road construction. The N.C. Department of Transportation began work last summer on a five-year project to replace a bridge over the Norfolk Southern Railroad near the shopping center. The $23 million project is about 30% complete. The work will continue to require lane closures and traffic pattern shifts in front of Morganton Heights.