CBRE GIP cites an attractive core-plus risk profile with a mix of in-place long-term income and short-term value creation opportunities through repositioning and lease-up. Eastdil Secured advised MGP on the deal.

LOS ANGELES—CBRE Global Investment Partners said Tuesday it had acquired a 45% interest in a $1.5-billion West Coast retail portfolio. Terms of the deal were not disclosed; San Francisco-based Merlone Geier Partners will remain the majority owner and operating partner.

Totaling nearly seven million square feet across 12 West Coast markets, the 55-property portfolio was assembled by MGP across five of its discretionary commingled funds. CBRE GIP made the investment on behalf of its flagship Global Alpha Fund and various separate account clients.

For CBRE GIP, the joint venture with MGP represents “a rare opportunity to access for our clients a large diversified portfolio of high-quality retail centers that would be challenging to acquire in scale,” said Ian Gleeson, the firm's CIO. “We are pleased to partner with Merlone Geier because they are a leading operator that has significant experience in the retail sector.”

The JV comprises the majority of MGP's portfolio, with concentrations in Southern California, Seattle and Sacramento. Other markets include the San Francisco Bay Area and Portland. The portfolio includes neighborhood, community and power centers, anchored mainly by supermarkets and other necessity-based retailers.

CBRE GIP cites an attractive core-plus risk profile with a mix of in-place long-term income and short-term value creation opportunities through repositioning and lease-up. Eastdil Secured advised MGP on the deal.