Equity One Enters Area With $120M Portfolio Acquisition

CAMBRIDGE, MA-Equity One Inc. entered into a definitive agreement to purchase six grocery-anchored, retail properties in the Boston metropolitan area from Charlesbank, LLC. The North Miami Beach, FL-based company, which until now has focused on community and neighborhood shopping centers in the south, paid $120 million for the 390,979-sf portfolio. The deal is expected to close on or before Sept. 30.

Charlesbank was prepared to take $80 million for the properties a few years ago but, in a move that proved to be prescient for the firm, it pulled out of that deal at the last minute, says James Koury, a senior vice president at Spaulding & Slye Colliers who specializes in retail properties. He tells GlobeSt.com that it is over the past few years that the value of supermarket-anchored centers have gone up.

“The valuation of these centers is peaking now,” he notes. “They will probably come down to historic norms soon.” Koury points out that these types of properties are considered core assets and tend to hold their value better than other types of properties; but he adds that the Charlesbank portfolio was bought at the height of the market and while there is some possibility to add value to the centers, it isn’t much.