Cole Snaps up $266M Albertson’s Portfolio in Sale-Leaseback Deal

With a total of 1.9 million square feet, the addition helps pump up Cole's retail portfolio.

November 4, 2010
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user dave_mcmt

In yet another sale-leaseback transaction, Cole Real Estate Investments has acquired a 32-store portfolio of Alberton’s grocery properties. The all-cash deal was valued at $266 million.

With a total of 1.9 million square feet, the addition helps pump up Cole’s retail portfolio. The stores are located in Arizona, New Mexico, Colorado, Texas and Louisiana. All are subject to 20-year individual triple-net leases that also include renewal options.

According to Cole chief acquisitions officer Kim Kundrak, the properties are in line with the company’s investment parameters. She added that these are income-producing core retail properties leased to nationally recognized tenants under long-term net leases.

Cole has acquired $1.8 billion in real estate this year to date, including retail, office and industrial properties.

Sale-leasebacks can benefit property owners in this economy by giving them immediate access to cash in exchange for a series of payments down the road. While they were less common last year, this year they are coming back strongly.