Blackstone Acquires 8 OC Retail Centers in $4 Billion Deal
Blackstone, a New York-based real estate investor, has acquired Retail Opportunity Investment Corporation, a San Diego-based real estate investment trust, for $4 billion. The deal includes 93 shopping centers across the West Coast, with eight located in Southern California.
The acquisition includes a portfolio of 10.5 million square feet of grocery-anchored shopping centers in Southern California, San Francisco, Seattle, and Portland, according to the Orange County Business Journal and the Commercial Observer, citing CoStar.
The all-cash deal, valued at $4 billion including existing debt, closed on February 12, after its announcement last fall.
“The grocery-anchored shopping center sector is experiencing accelerating fundamentals, benefiting from nearly a decade of virtually no new construction, while demand for brick-and-mortar grocery stores, restaurants, fitness, and other lifestyle retailers remains healthy,” said Jacob Werner, co-head of Americas Acquisitions at Blackstone Real Estate.
Eight of the shopping centers are located in Orange County, including Peninsula Marketplace and 5 Points Plaza, both in Huntington Beach; Fullerton Crossroads in Fullerton; Harbor Place Center in Garden Grove; Santa Ana Downtown Plaza in Santa Ana; Cypress City West in Cypress; The Village at Nellie Gail Ranch in Laguna Hills; and Marketplace at Mission Foothills in Mission Viejo.
Blackstone paid $40 million for Peninsula Marketplace at 19021-19125 Goldenwest Street, anchored by a Ralphs Fresh Fare supermarket and Planet Fitness, the highest price of the OC group, according to the Business Journal. Most of Fullerton Crossroads at 3200-3362 Yorba Linda Boulevard sold for $37.3 million, with a Kohl’s trading hands in a separate deal for $35.7 million.
Harbor Place Center at 13190-13220 Harbor Boulevard in Garden Grove, with a Ross Dress for Less, sold for $36.9 million, while 5 Points Plaza at 18593 Main Street in Huntington Beach traded in two separate deals, for $35.2 million and $33.5 million, according to the Business Journal.
The remaining Orange County shopping centers in the portfolio swapped ownership for smaller sums. Cypress Center West at 4005-4197 Ball Road sold for $25 million; most of The Village at Nellie Gail Ranch at 26532 Moulton Parkway sold for $12.8 million, with a Smart & Final Extra! grocery store also selling for $12.3 million. Marketplace at Mission Foothills at 28721-28841 Los Alisos Boulevard sold for $6.2 million. The price Blackstone paid for Santa Ana Downtown Plaza at 301-431 East 1st Street was not disclosed.
Conclusion:
The acquisition by Blackstone is a significant move in the real estate investment market, highlighting the growing demand for brick-and-mortar shopping centers and the importance of grocery-anchored retail.
FAQs:
* What is the name of the company that acquired Retail Opportunity Investment Corporation?
+ Blackstone
* How much did Blackstone pay for the acquisition?
+ $4 billion
* How many shopping centers are included in the portfolio?
+ 93
* Where are the shopping centers located?
+ West Coast, including Southern California, San Francisco, Seattle, and Portland
* How many shopping centers are located in Orange County?
+ 8
