Phillips-Edison Fund IV Portfolio Fetches $150M
- Aug 29, 2014
Six months after tapping CBRE Group Inc. to market the nearly 1.4 million-square-foot Phillips-Edison Fund IV Portfolio, Phillips Edison Shopping Center Fund IV REIT L.L.C. has sold the group of nine retail properties to Newquest-Epic Investments L.L.C. The REIT walked away with $150 million on the deal.
The properties were marketed as a group without the option for single-property purchases, and it didn’t take long for an investor to bite. Potential buyers were particularly attracted to the jewel of the portfolio, the 159,400-square-foot Village Center in Phoenix, Ariz.’s Paradise Valley submarket. The retail center features a successful Target store with a below-market ground lease. “The Village Center has been a high-performing property since it was developed in 1986 [and] I anticipate that center will only become more successful in the future,” Jesse Goldsmith, a vice president with CBRE, said in a prepared statement. “
The Fund IV collection also includes two assets in Illinois: Prairie Point in Aurora and Glidden Crossing in De Kalb. An additional two properties, Deerfield Place and Plaza North, are sited in Omaha, Neb., and two more, Johnson Creek and Hermiston Plaza, call the respective Oregon cities of Happy Valley and Hermiston home. Completing the six-state group are Marketplace in Independence, Mo., and Silver State in Sparks, Nev.
Six of the Fund IV properties are grocery-anchored and three assets, including Village Center, meet Class A standards, which, as Goldsmith noted, “makes this offering unique as there is a lack of class A product currently on the market.”