Nuveen buys 13 grocery-anchored centers for $445.5M

Nuveen Real Estate paid $445.5 million for a 13-property open-air retail portfolio spanning California, Colorado and Washington. JLL represented Nuveen and announced the acquisition Monday.

The acquisition gives Nuveen a 93.5%-leased, 1.89 million-square-foot portfolio with six centers in California, four in Colorado and three in Washington. Anchors include Safeway, Walmart Neighborhood Market, Sprouts, FoodMaxx and Grocery Outlet; other national tenants include Target, TJ Maxx, Marshalls, Ross and Best Buy.

For advisors and allocators tracking commercial real estate, the transaction values the portfolio at about $236 per square foot, a comparable for open-air grocery-anchored centers.

U.S. Bank provided $239 million in financing secured by 11 of the 13 properties, equal to 54% of the total purchase price. The interest rate and maturity were not disclosed.

Commercial Observer reported the transaction is likely among the largest grocery-anchored shopping center deals in the Western U.S. in recent years. JLL said limited new construction across the three states, combined with large residential populations, has supported demand for grocery-anchored space, and that institutional buyers are increasingly targeting grocery-anchored and other open-air retail.

The California assets are Santa Susana Plaza in Simi Valley, Marin Gateway in Sausalito, Marketplace at Birdcage in Citrus Heights, Santa Rita Plaza in Salinas, TJ Maxx Plaza in Roseville and Tracy Pavilion in Tracy.

Nuveen paid $58.25 million in October for the Vons-anchored Marigold Center in San Luis Obispo, as Private Wealth Daily previously reported.