Phillips Edison specializes in the acquisition and redevelopment of under-performing grocery-anchored shopping centers. It owns and manages 103 neighborhood and community shopping centers totaling over 12 million sf in 26 states.
Phillips Edison acquisitions VP John Bessey tells GlobeSt.com the first closing for the third fund was held in October. To date, the company has invested about $88 million ($30 million of the equity) in 12 properties totaling 1.6 million.
A big part of that total was a recent $47-million acquisition from Ramco-Gershenson Properties Trust that GlobeSt.com reported on earlier this week. The properties are located in tertiary markets in Alabama, Florida, Georgia, Tennessee and the Carolinas.
Bessey says the fund's sweet spot is for assets larger than 60,000 sf. One example of the type of assets the fund will invest in is Crosspointe, a 73,788-sf Food Lion-anchored center in Midlothian, VA, that it acquired for $4.1 million. The property's occupancy is 80.2%. The goal is to control expenses while increasing occupancy and pushing rents. "It's a local leasing play that will take a concentrated effort," he says.
Another, more national leasing play is the Western Lights Shopping Center in Syracuse, NY, a 249,000-sf property that the fund acquired 35% vacant for $20.3 million. A big part of the vacancy is a former Kmart building that could be backfilled with one of several mid-box retailers, says Bussey. "It's got great visibility in a very dense market," he says.
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