Waterstone buys Franklin Square III shopping center in Gastonia

Waterstone Properties Group has acquired Franklin Square III in Gastonia, North Carolina, adding to its retail push in high-growth East Coast markets. The deal expands Waterstone’s North Carolina commitment to more than $150 million and comes as the company seeks near-term value creation at the shopping center.

Why it matters: - The acquisition gives Waterstone Properties Group another retail asset in a growing market near Charlotte. - Gastonia is seeing more residents, more businesses and higher daytime traffic, which can support tenant demand and future leasing. - The purchase also adds to Waterstone’s expanding North Carolina footprint and broader East Coast strategy.

What happened: - Waterstone Properties Group announced the purchase of Franklin Square III shopping center in Gastonia, North Carolina. - The company closed on the property on June 14, 2026. - The center sits in Gastonia’s dominant retail corridor. - Tenants at Franklin Square III include Kohl’s, Sephora, Men’s Wearhouse, Hallmark, Old Navy and Lane Bryant.

The details: - A new 3.5 million-square-foot industrial park north of the property is increasing daytime population in the area. - Waterstone said the acquisition fits its strategy of buying well-located, underperforming shopping centers in high-growth East Coast markets for reinvestment and development. - Waterstone is in active negotiations with a national credit tenant to fill a significant vacancy at the center. - Richard Greer, Waterstone’s chief investment officer, said the vacant space could be meaningfully accretive to the center’s performance. - Waterstone said it has now committed more than $150 million in North Carolina. - Waterstone said its acquisition and development platform has deployed more than $400 million over the past year in regional and neighborhood retail assets.

Between the lines: - The Gastonia deal suggests Waterstone is leaning into markets where population growth, affordability and proximity to Charlotte may support retail performance. - The off-market sourcing points to a competitive acquisition process and a focus on assets with room for operational upside. - The emphasis on backfilling vacancy signals a value-add play rather than a pure hold strategy.

What’s next: - Waterstone is working to secure a national credit tenant for the open space at Franklin Square III. - The company is likely to continue targeting high-growth retail corridors in North Carolina and along the East Coast. - Further reinvestment at the Gastonia center could follow if leasing progress supports the business plan.

The bottom line: - Waterstone is betting that Franklin Square III can benefit from Gastonia’s growth, a stronger tenant mix and active leasing work.