Chevy Chase, MD


Acquisition Marks New Alliance with Retail Experts

Federal Capital Partners (FCP) today announced its completion of the acquisition of Lexington Village Shopping Center. FCP had previously purchased the note in a private transaction and had completed the foreclosure last month with the court recently ratifying that foreclosure.

Lexington Village Shopping Center is a 175,000 square foot fully approved and partially completed retail development located at the southeast corner of the intersection of Maryland Route 235 and Buck Hewitt Road in Lexington Park, Maryland. The existing center includes an approximately 87,200 square foot Kohl’s department store that opened in April 2010 and an executed ground lease with Rite Aid. The site plan is being modified to accommodate a 37,300 square foot Dick’s Sporting Goods as well as approximately 25,000 square feet of additional retail space and three pad sites. FCP recently executed the lease with Dick’s and plans to complete all of the proposed project improvements over the next 15 months.

FCP has acquired or funded more than $600 million of real estate to date through the company’s FCP Fund I, L.P., a $240 million co-mingled real estate private equity fund. The investments include multi-family residential, office and retail real estate in the Mid-Atlantic region.

In connection with the acquisition and proposed development of Lexington Village, FCP also announced that it has formed an alliance with retail industry veterans Howard Biel and Drew Gorman, who will manage the development and leasing of select FCP retail properties. This strategic alliance will focus upon acquiring existing income-producing retail assets in prime markets throughout this region, purchasing attractive development and redevelopment opportunities in high barrier-to-entry locations and buying notes on troubled assets that are underperforming and/or which could benefit from repositioning, remerchandising, and redevelopment. Biel and Gorman will continue to be responsible for Faison’s Mid-Atlantic operation.

“The purchase of the note in Lexington Park further demonstrates FCP’s creativity and flexibility,” said FCP Managing Partner Esko Korhonen. He continued, “Lexington Village Shopping Center represented an opportunity to acquire a fully entitled operating property at a significant discount. We have since launched the planning and development process with St. Mary’s County to reconfigure and complete the center so that it better serves this vibrant community. We intend to reinvigorate the marketing program and complete the lease-up of the project with exciting retail tenants like Dick’s Sporting Goods to complement a very successful Kohl’s Department Store.”

“Our newly formed strategic alliance culminates our search for the right affiliation for our retail real estate initiatives,” Korhonen continued. “We think the timing is perfect, and having known Howard and Drew for years, we have great confidence that this is the first step toward building a robust retail-oriented business and portfolio. The acquisition of Lexington Village is an excellent example of the type of transaction we plan to pursue.”

Biel and Gorman with Faison have been one of the most active shopping center developers in the Mid-Atlantic region for many years. Their footprint has been most distinctively noted in Southern and Western Maryland, where they have produced over 5 million square feet of retail space. “The relationship with FCP is a natural fit for us,” noted Biel and Gorman. “FCP’s access to capital and broad real estate investing experience combined with our retail development and leasing expertise facilitates our ability to continue to grow a shopping center pipeline and skillfully execute leasing and development objectives for acquired properties. We have known the principals at FCP since the late 1990’s and believe that their creativity and decisiveness will complement our strengths and experience extremely well.”


About Federal Capital Partners

Federal Capital Partners ( is a real estate investment company headquartered in Georgetown in Washington, DC. The Managing Partners include Esko Korhonen, Lacy Rice, Tom Carr and Alex Marshall. Since its inception, FCP has acquired more than $2.0 billion of real estate assets and debt across all property types.

FCP manages FCP Fund I, L.P., a $240 million co-mingled real estate private equity fund formed to invest in multiple real estate sectors in the Mid-Atlantic region, with a focus on the metro Washington, DC area. The Fund is able to provide both debt and equity capital as needed for real estate investments in the market.