CBRE Global Investment Grabs Piece of $1.5B Retail Portfolio
- Nov 28, 2016
Los Angeles—CBRE Global Investment Partners has invested approximately $450 million for a 45 percent interest in a $1.5 billion portfolio totaling 55 retail assets spanning 12 West Coast markets. The investment was made on behalf of the company’s Global Alpha Fund and various separate clients.
Merlone Geier Partners, a privately held real estate investment company with main offices in San Francisco and San Diego, assembled the 7 million square foot portfolio across five of its discretionary commingled funds. To date, Merlone Geier Partner has acquired 141 retail and mixed-use properties totaling over 23 million square feet of space. The company was advised by Eastdil Secured in the transaction, and will remain the portfolio’s majority owner and operating partner.
“This joint venture gives us a rare opportunity to access for our clients a large diversified portfolio of high-quality retail centers that would be challenging to acquire in scale,” said Ian Gleeson, CIO of CBRE Global Investment Partners, in prepared remarks. “We are pleased to partner with Merlone Geier because they are a leading operator that has significant experience in the retail sector.”
According to an official statement by CBRE Global Investment Partners, the properties are located in Southern California, Seattle, Sacramento, the San Francisco Bay Area and Portland. These areas support a strengthening retail sector driven by strong demographics and a growing tech field. Additionally, the portfolio offers a mix of value-add potential through repositioning and lease up.
The 55 retail assets include neighborhood, community and power centers that are primarily grocery and other necessity-anchored and have historically performed well through market cycles.
Image courtesy of Merlone Geier Partners