Nuveen Real Estate has acquired 13 open-air shopping centers across California, Colorado and Washington for $445.5 million, JLL Capital Markets announced Monday, November 2. The portfolio totals 1.89 million square feet and was 93.5% leased, according to JLL.
JLL said it advised Nuveen on the acquisition and arranged $239 million in financing through U.S. Bank for 11 of the 13 properties. That financing figure covers those 11 centers, not the entire portfolio, and is separate from the total purchase price.
The properties comprise six centers in California, four in Colorado and three in Washington. JLL described them as primarily grocery-anchored community and neighborhood shopping centers. It did not identify the seller in its announcement.
Grocery tenants include Safeway, Walmart Neighborhood Market, Sprouts, FoodMaxx and Grocery Outlet, JLL said. Other national retailers in the portfolio include Target, TJ Maxx, Marshalls, Ross and Best Buy. The release did not provide a property-by-property rent roll or individual purchase prices.
“Investor demand for high-quality, well-located retail remains strong, and this portfolio provides Nuveen with scale and geographic diversification across multiple West Coast markets,” JLL Managing Director Daniel Tyner said in the announcement. His comments describe the broker’s assessment of the transaction, rather than a guarantee of investment returns.
JLL attributed retail demand in the markets to limited new supply, population growth and established surrounding neighborhoods. The portfolio gives Nuveen exposure to three states, but the announcement did not disclose a capitalization rate, projected income or expected investor return.
The investment sales team included Tyner, Geoff Tranchina, Gleb Lvovich and Eric Kathrein. Kevin MacKenzie, Spencer Bergthold and John Marshall led JLL’s debt advisory work.
The announcement describes a completed acquisition, not a proposed bid. It expands Nuveen’s holdings in open-air retail at a time when JLL says demand for well-located centers remains strong; it does not establish that every property is fully occupied or that future leasing gains are assured.
JBizNews Desk | New York
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