Waterstone Makes $87M Charlotte Retail Buy
The buyer financed the purchase with a $63 million loan.
Waterstone Properties has paid $87 million for Windsor Square Shopping Center, a 659,222-square-foot power center in Matthews, N.C. United Bank originated a $63.1 million acquisition loan, according to Yardi Matrix information.
Hackney Real Estate Partners sold the asset after nearly two years of ownership. The firm had acquired Windsor Square from Sterling Organization for $70.1 million in November 2024.
The current acquisition is in line with Waterstone’s Southeast retail expansion. In July, the company paid $40.8 million for Franklin Square III, a 272,181-square-foot asset in Gastonia, N.C. Hackney was the seller in that transaction as well.
A Charlotte-area power center
Completed in 1987, Windsor Square underwent renovations most recently in 2014. The property occupies a 64-acre site at 1814 Windsor Square Drive, serving a trade area with nearly 181,000 residents within a 5-mile radius and attracting 6.4 million annual visits.
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Anchored by national retailers including Kohl’s, At Home, Sam’s Club, Ross Dress for Less, PetSmart and DSW, among others, the asset was 99 percent leased at the time of sale. The buyer plans to leverage its existing tenant relationships and management platform to improve the shopping center’s tenant mix and customer experience. Atlantic Retail will handle leasing at the shopping center going forward.
The shopping center is close to Novant Health Matthews Medical Center along the U.S. 74 retail corridor, providing direct access to Interstate 485. Downtown Charlotte is 11 miles away, while its international airport is some 30 miles northwest.
Charlotte’s healthy fundamentals support retail growth
The Queen City’s retail sector continued to post tight fundamentals during the second quarter of 2026, according to a recent report by Colliers.
Its overall vacancy rate declined to 2.8 percent, remaining below the 3 percent mark for the third consecutive quarter. Smaller-format buildings remain a tenant favorite, with properties under 10,000 square feet posting a 2 percent rate, the report shows.
Meanwhile, the metro’s strong population gains and a healthy economic environment continue to sustain the sector, as demand in high-growth areas with major employers and developments with mixed-use design are poised to reinforce the segment some more.
As for investments, a recent deal was Hines’ $170 million acquisition of the Design Center of the Carolinas. The nine-building, mixed-use asset includes 122,000 square feet of retail space and 117,000 square feet of creative office space.
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