CINCINNATI—As reported in GlobeSt.com, in the first three quarters of 2014 Phillips Edison-ARC Grocery Center REIT II, Inc. snapped up 48 retail centers across the US with an aggregate price of about $765 million. And in the fourth quarter the company has continued expanding into new regions. It just bought three grocery-anchored shopping centers, one each in Illinois, Michigan and Wisconsin, its first acquisitions in these states.
Phillips Edison-ARC typically focuses attention on secondary markets 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. And although the still-developing recovery has boosted demand and occupancy at well-located centers, in general developers have still not shown much willingness to launch new construction, and this should buoy existing retail and ensure investors get solid returns.
“We're still focused on buying centers with the #1 or #2 grocers in the markets we go into,” Jeff Edison, chairman of the board and chief executive officer, told GlobeSt.com earlier this month. “We have a rigid system that we go through to buy these assets.”
The new purchases include: Hilander Village, a 125,712-square-foot shopping center in Roscoe, IL, near Rockford and anchored by a Schnucks grocery store; Milan Plaza, a Kroger grocery store-anchored shopping center located in Milan, MI, a suburb of Ann Arbor; and Point Loomis, a Pick 'n Save grocery store-anchored shopping center located in Milwaukee.
The prices were not disclosed. The company was unable to provide any additional commentary at this time.
Schnucks is a leading grocer by market share in the Midwest, and the number one grocer by market share in the greater Rockford metro area, Phillips Edison-ARC officials say. Other national and regional tenants featured at Hilander include Subway, Century 21, H&R Block, Hallmark and Great Clips. Kroger is the number one grocer in the Ann Arbor area and Milan Plaza also features a Kroger fuel station and national tenants Edwards Jones and Ace Hardware. Pick 'n Save is a subsidiary of Roundy's, a leading grocer in the Midwest and the number one grocer in the Milwaukee area. Point Loomis is also co-anchored by Kohl's and features an outparcel leased to Chase Bank.
Phillips Edison & Company, which has acquired over $3.25 billion in shopping centers throughout the US, and AR Capital, LLC, a real estate investment program, sponsor the REIT.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
