CINCINNATI—Phillips Edison Grocery Center REIT II, Inc. continues to be one of the most active buyers of shopping centers in the US. It has just acquired three more grocery-anchored properties in MI, CA and MA, for a total of $51.5 million. It now owns and manages a retail portfolio consisting of 33 grocery-anchored shopping centers totaling 3.5 million square feet.
As reported in GlobeSt.com, the Cincinnati-based Phillips Edison typically focuses attention on grocery store-anchored centers in secondary or tertiary markets, frequently those with the top grocer in its respective region, that it predicts will experience solid growth over the next few years. This keeps it out of the intense competition and lower returns found in the core markets.
Its newest purchases include Crossroads Towne Center, a 102,275 square foot grocery store-anchored shopping center in Howell, MI, a suburb of Ann Arbor. Kroger, the number one grocer in Southeast Michigan by market share, anchors this property. It also features national tenants such as Great Clips, Jets Pizza, Subway, H&R Block, and Little Caesars.
An investment sales team from Mid-America Real Estate Corp. brokered this $8 million sale. Joe Girardi of Mid-America in cooperation with Daniel Stern of Mid-America Real Estate – Michigan Inc. were the exclusive brokers on behalf of Cincinnati-based Viking Partners.
Another new addition to Phillips Edison's expanding portfolio is Central Valley Marketplace, an 81,897 square foot shopping center in Ceres, CA, a suburb of Modesto, which the company bought from Palo Alto Bayshore Investors, LLC for $21 million. PAQ Food 4 Less, which operates 42 supermarkets in CA and HI, anchors this property. It also features national tenants Starbucks, Game Stop, Panda Express and Wing Stop.
Highlands Plaza is the last of the new additions. It's an 112,869 square foot grocery store-anchored shopping center in Easton, MA, a suburb of Boston, bought from Highlands Plaza, LLC for $22.5 million. The center is anchored by Hannaford, which operates over 180 stores on the East Coast. The center also features national tenants TJ Maxx, Liberty Mutual and Supercuts.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
