PHOENIX—BIG Shopping Centers USA and RED Development have entered into a joint venture partnership to maximize market presence and performance of select US retail properties in the Midwest and West. In particular, the partnership seeks to acquire established, first-tier community, lifestyle and power centers with strong tenant line-ups and sales figures that are well positioned in markets throughout the United States.
“BIG USA joined with RED to pursue high-quality retail assets in targeted, high-growth, stabilized US markets for long-term hold,” explains Stanley L. McElroy, Jr., president, BIG Shopping Centers USA. “The complementary and proven expertise of both teams that has built our respective retail real estate portfolios and reputations really makes this synergetic partnership work—and beneficial to both companies.”
The inaugural investment of BIG RED Portfolio, LLC includes four shopping center properties in two states totaling 1.5 million square feet: Regency Court (Omaha) a 171,000-square foot, enclosed specialty center;The Shops at Hilton Village (Phoenix) a 93,000-square foot specialty center with 25 boutiques, restaurants and services catering to affluent Scottsdale residents; Village Pointe (Omaha) a 601,000-square foot, power and lifestyle center recognized as the destination for upscale national brands; and Camelback Colonnade (Phoenix) a 618,000-square foot power center, situated along Camelback Road in the heart of Camelback Corridor.
Steve Maun, RED's president, tells GlobeSt.com he's bullish on the Phoenix market. “We've been able to find some of those high quality assets that are exclusively retail. We've done some remerchandising and been able to add value in some cases. The partnership with BIG has allowed us to find those opportunities and get the right locations.”
McElroy concurs with Maun: “We like the Phoenix market and we're driven by our growing relationship with RED; they have extensive experience in the market. Camelback Colonnade is a great, dominant location and Hilton Village is about as internet resistant as a center can be with its restaurants and one-of-a-kind boutiques. Again, we are fortunate to have RED as a great co-investment partner that fits our business model and has skill sets which add to ours.”
The new portfolio combines properties that have been owned separately by BIG USA and RED, with plans to add properties to the portfolio. In the joint venture with RED, BIG USA acts primarily as a co-investment partner contributing strategic leasing and management direction while RED Development will manage, lease and operate the assets. RED and BIG USA have worked together as owners of the successful Village Pointe property since 2010.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 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.
