At a glance
- JLL represented the seller, A&C Properties Inc., and arranged $66.36 million of acquisition financing for the buyer through an insurance company.
- The acquisition financing equates to about 61% loan-to-value on grocery-anchored collateral.
- With occupancy at 96% and rents below market, per the report, returns depend on rent increases at renewal rather than occupancy gains.
11North Partners acquired the Arizona Grocery Portfolio, seven grocery-anchored properties in Phoenix and Tucson totaling 422,949 square feet, for $108.7 million, according to IREI.
JLL represented the seller, A&C Properties Inc., and arranged $66.36 million of acquisition financing for the buyer through an insurance company. The price works out to roughly $257 per square foot, and the portfolio is 96% occupied, anchored by Fry's Food & Drug and leased to a mix of daily-needs and necessity-based retailers.
The acquisition financing equates to about 61% loan-to-value on grocery-anchored collateral.
With occupancy at 96% and rents below market, per the report, returns depend on rent increases at renewal rather than occupancy gains. The purchase is 11North's first investment in Arizona and extends its necessity-based retail platform into an eighth state.
Reported by the Deals desk from Institutional Real Estate, Inc. (IREI). Published . Corrections