Cohen & Steers Income Opportunities REIT, Inc. Acquires Grocery-Anchored Shopping Center in Partnership with Phillips Edison & Company
Cohen & Steers Income Opportunities REIT (CNSREIT) has announced the acquisition of Des Peres Corners, a grocery-anchored shopping center in Des Peres, Missouri, in partnership with Phillips Edison & Company (PECO). This acquisition is part of a $300 million programmatic joint venture, with CNSREIT owning 80% and PECO 20%. The 121,000 square foot center, built in 2009, is 90% occupied and anchored by a 74,000 square foot Schnucks grocer.
The joint venture aims to leverage PECO's expertise in acquiring open-air, grocery-anchored shopping centers. Des Peres, a growing St. Louis suburb, boasts strong retail occupancy rates and an affluent submarket. This partnership is expected to drive value and generate attractive returns for both entities, while providing CNSREIT shareholders with access to superior deal flow and operating capabilities.
Cohen & Steers Income Opportunities REIT (CNSREIT) ha annunciato l'acquisizione di Des Peres Corners, un centro commerciale ancorato a un supermercato a Des Peres, Missouri, in collaborazione con Phillips Edison & Company (PECO). Questa acquisizione fa parte di un veicolo di investimento congiunto programmatico da 300 milioni di dollari, con CNSREIT che possiede l'80% e PECO il 20%. Il centro, di 121.000 piedi quadrati, costruito nel 2009, è occupato al 90% e ancorato da un supermercato Schnucks di 74.000 piedi quadrati.
Il veicolo di investimento mira a sfruttare l'expertise di PECO nell'acquisire centri commerciali all'aperto ancorati a supermercati. Des Peres, una suburbia in crescita di St. Louis, vanta elevate percentuali di occupazione nel retail e un mercato secondario benestante. Si prevede che questa partnership generi valore e ritorni attraenti per entrambe le entità, offrendo ai soci di CNSREIT accesso a un flusso di affari superiore e capacità operative.
Cohen & Steers Income Opportunities REIT (CNSREIT) ha anunciado la adquisición de Des Peres Corners, un centro comercial anclado a un supermercado en Des Peres, Missouri, en asociación con Phillips Edison & Company (PECO). Esta adquisición forma parte de un programa de empresa conjunta programática de 300 millones de dólares, con CNSREIT poseyendo el 80% y PECO el 20%. El centro, con una superficie de 121,000 pies cuadrados, construido en 2009, está ocupado al 90% y anclado por un supermercado Schnucks de 74,000 pies cuadrados.
La empresa conjunta tiene como objetivo aprovechar la experiencia de PECO en la adquisición de centros comerciales al aire libre anclados a supermercados. Des Peres, un suburbio en crecimiento de St. Louis, presenta altas tasas de ocupación minorista y un submercado acomodado. Se espera que esta asociación impulse el valor y genere rendimientos atractivos para ambas entidades, al tiempo que ofrece a los accionistas de CNSREIT acceso a un flujo de ofertas superior y capacidades operativas.
Cohen & Steers Income Opportunities REIT (CNSREIT)는 Missouri주 Des Peres에 있는 슈퍼마켓이 주되는 상업 센터인 Des Peres Corners의 인수를 발표했습니다. 이 인수는 3억 달러 규모의 프로그램 공동 투자 계획의 일환으로, CNSREIT는 80%를 소유하고 PECO는 20%를 소유합니다. 2009년에 건설된 121,000 평방 피트 규모의 센터는 90%가 임대되어 있으며, 74,000 평방 피트 규모의 Schnucks 슈퍼마켓이 있습니다.
이번 공동 투자는 PECO의 슈퍼마켓이 주된 오픈 에어 쇼핑센터 인수 전문성을 활용하는 것을 목표로 합니다. Des Peres는 성장하는 세인트루이스 교외로, 높은 소매 점유율과 부유한 하위 시장을 자랑합니다. 이 파트너십은 두 회사 모두에게 가치 창출과 매력적인 수익률을 가져오고, CNSREIT 주주들에게는 우수한 거래 흐름과 운영 능력에 접근할 수 있는 기회를 제공합니다.
Cohen & Steers Income Opportunities REIT (CNSREIT) a annoncé l'acquisition de Des Peres Corners, un centre commercial ancré par un supermarché à Des Peres, Missouri, en partenariat avec Phillips Edison & Company (PECO). Cette acquisition fait partie d'un joint-venture programmatique de 300 millions de dollars, avec CNSREIT détenant 80% et PECO 20%. Le centre de 121 000 pieds carrés, construit en 2009, est occupé à 90% et ancré par un supermarché Schnucks de 74 000 pieds carrés.
Le joint-venture vise à tirer parti de l'expertise de PECO dans l'acquisition de centres commerciaux en plein air ancrés par des supermarchés. Des Peres, une banlieue en croissance de St. Louis, se distingue par de solides taux d'occupation du commerce de détail et un sous-marché aisé. Ce partenariat devrait générer de la valeur et des rendements attractifs pour les deux entités, tout en offrant aux actionnaires de CNSREIT un accès à un flux d'opportunités supérieur et à des capacités opérationnelles.
Cohen & Steers Income Opportunities REIT (CNSREIT) hat die Akquisition von Des Peres Corners angekündigt, einem supermarketgeführten Einkaufszentrum in Des Peres, Missouri, in Partnerschaft mit Phillips Edison & Company (PECO). Diese Akquisition ist Teil eines 300-Millionen-Dollar-programmatischen Joint Ventures, bei dem CNSREIT 80% und PECO 20% besitzt. Das 121.000 Quadratfuß große Zentrum, das 2009 erbaut wurde, ist zu 90% ausgelastet und wird von einem 74.000 Quadratfuß großen Schnucks-Supermarkt getragen.
Das Joint Venture zielt darauf ab, die Expertise von PECO im Erwerb von Außen-Einkaufszentren, die an Supermärkte angekoppelt sind, zu nutzen. Des Peres, ein wachsender Vorort von St. Louis, hat hohe Einzelhandelsbelegungsraten und einen wohlhabenden Teilmarkt. Diese Partnerschaft wird voraussichtlich Wert schaffen und attraktive Renditen für beide Unternehmen generieren, während sie den Aktionären von CNSREIT Zugang zu überlegenen Geschäftsmöglichkeiten und Betriebskapazitäten verschafft.
- Acquisition of a 90% occupied grocery-anchored shopping center in a growing, affluent suburb
- Partnership with Phillips Edison & Company, a leading owner of grocery-anchored shopping centers
- $300 million programmatic joint venture providing access to growth capital and expanded acquisition opportunities
- Strong market position with Schnucks as the anchor tenant, the grocery market share leader in St. Louis
- High occupancy rates in the local retail market, outperforming neighboring submarkets and U.S. average
- None.
Insights
This acquisition marks a significant strategic move for Cohen & Steers Income Opportunities REIT (CNSREIT) and Phillips Edison & Company (PECO). The joint venture, targeting
Key financial implications:
- CNSREIT's 80% ownership in the venture demonstrates a substantial commitment, potentially leading to increased revenue streams and portfolio diversification.
- PECO's 20% stake and operational role leverages their expertise while expanding their market reach with capital outlay.
- The 90% occupancy rate of Des Peres Corners suggests strong immediate cash flow potential, with room for upside through full occupancy.
- The focus on necessity-based retailers provides resilience against e-commerce disruption, potentially ensuring stable long-term returns.
The partnership structure allows CNSREIT to benefit from PECO's operational expertise while maintaining majority ownership, a prudent approach to expanding in the grocery-anchored retail space. However, investors should monitor how this venture affects CNSREIT's overall portfolio balance and risk profile.
The acquisition of Des Peres Corners is a strategic play in the thriving grocery-anchored retail sector. Several market factors make this a noteworthy investment:
- Open-air shopping centers are experiencing peak occupancy levels, reaching
95.7% nationwide, indicating strong demand and potential for rental growth. - Des Peres' affluent submarket boasts above-average occupancy rates and all-time low retail vacancy, suggesting a robust local economy and consumer base.
- The property's location near high-profile employers and educational institutions ensures a stable customer flow.
- Schnucks' market leadership in St. Louis provides a strong anchor tenant, likely driving consistent foot traffic to the center.
The joint venture's focus on grocery-anchored centers aligns with current market trends favoring necessity-based retail. This approach could provide resilience against economic downturns and e-commerce competition. However, investors should be aware that the concentration in a single retail subsector could expose the venture to specific risks, such as changes in consumer shopping habits or grocery industry disruptions.
Des Peres Corners is an approximately 121,000 square foot grocery-anchored, open-air shopping center built in 2009, located at one of the most prominent intersections in
Des Peres is recognized as a top suburban market for its proximity to high-profile employers in the area, 30 colleges and universities and a highly-rated local school system. The affluent submarket boasts strong five-year average occupancy rates for retail properties, consistently outperforming neighboring submarkets and the
James S. Corl, Chief Executive Officer of CNSREIT and Head of the Private Real Estate Group at Cohen & Steers, said:
"We are excited to launch our programmatic joint venture with Phillips Edison & Company through this first acquisition. PECO is one of the largest publicly traded owners of grocery-anchored shopping centers in the
Jeff Edison, Chairman and Chief Executive Officer of Phillips Edison & Company, added:
"We are pleased to partner with CNSREIT on this joint venture and first acquisition. This joint venture increases PECO's access to growth capital and increases the acquisition universe available to us. We believe this joint venture will generate attractive returns for both partners."
CNSREIT is acquiring high quality properties that generate attractive income potential across the
About CNSREIT. Cohen & Steers Income Opportunities REIT, Inc. is a perpetual-life, non-listed REIT formed to invest primarily in high quality, income-focused, stabilized properties within
About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in
About Phillips Edison & Company. Phillips Edison & Company, Inc. ("PECO") is one of the nation's largest owners and operators of omni-channel grocery-anchored shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO's centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout
PECO uses, and intends to continue to use, its Investors website, which can be found at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward looking statements within the meaning of the federal securities laws. These forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," "identified" or other similar words or the negatives thereof. These may include CNSREIT's financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements with respect to acquisitions, statements regarding future performance and statements regarding identified but not yet closed acquisitions. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. CNSREIT believes these factors also include but are not limited to those described under the section entitled "Risk Factors" in the prospectus, as amended and supplemented from time to time, filed with the Securities and Exchange Commission (the "SEC"), which is accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document. Except as otherwise required by federal securities laws, CNSREIT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.
Website: https://www.cnsreit.com/
View original content:https://www.prnewswire.com/news-releases/cohen--steers-income-opportunities-reit-inc-acquires-grocery-anchored-shopping-center-in-partnership-with-phillips-edison--company-302207013.html
SOURCE Cohen & Steers Income Opportunities REIT, Inc.
FAQ
What property did Cohen & Steers Income Opportunities REIT (CNS) acquire in July 2024?
What is the ownership structure of the joint venture between CNSREIT and PECO?
What is the target equity for the joint venture between CNSREIT and PECO?
What is the occupancy rate of the Des Peres Corners shopping center acquired by CNSREIT?
Who is the anchor tenant of the Des Peres Corners shopping center?
