November 13, 2018
HFF arranged a joint venture between Cincinnati, OH-based Phillips Edison & Company, Inc. (PECO) and its affiliate in facilitating the formation of Grocery Retail Partners I (GRP I) and Grocery Retail Partners II (GRP II), two JV partnerships totaling $414.5 million in asset value. The deal encompasses 20 high-quality, grocery-anchored shopping centers in what is the largest shopping center recapitalization of the year.
HFF arranged GRP I and GRP II JVs with Northwestern Mutual as the partner.
Northwestern Mutual acquired an 85% interest in the 17-center portfolio, which is currently valued at $368 million. PECO maintained 15% ownership in the portfolio, while providing asset and property management services for the JV. Proceeds will be delever PECO’s balance sheet, fund redevelopment projects and further expand its portfolio of grocery-anchored centers.
Northwestern Mutual invested in three shopping centers currently owned by PECO III, acquiring a 90% interest in the portfolio, which is valued at approximately $46.5 million, and PECO III maintained a 10% ownership in the portfolio.
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