Nuveen Acquires $445M Retail Portfolio Across Three Western States

Nuveen Real Estate has acquired a 13-property retail portfolio in California, Colorado and Washington for $445.5 million in what is likely one of the largest grocery-anchored shopping center transactions in the Western U.S. in recent years.

The portfolio is 93.5 percent leased. It includes 1.89 million square feet of open-air retail space, with six properties in California, four in Colorado and three in Washington, according to an announcement Monday from JLL, which represented Nuveen in the acquisition. The deal values the portfolio at approximately $236 per square foot.

The portfolio’s 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.

Major tenants include Safeway, Walmart Neighborhood Market, Sprouts, FoodMaxx and Grocery Outlet. Other national retailers include Target, TJ Maxx, Marshalls, Ross and Best Buy.

U.S. Bank provided $239 million in financing for 11 of the 13 properties. The debt covers 54 percent of the portfolio’s total purchase price. JLL did not disclose the interest or maturity date.

“Investor demand for high-quality, well-located retail remains strong, and this portfolio provides Nuveen with scale and geographic diversification across multiple West Coast markets,” JLL Managing Director Daniel Tyner said in a statement. “The combination of well-located infill centers paired with future growth potential at each asset made this portfolio extremely attractive in today’s market.”

JLL added that limited new construction in the three states paired with significant residential populations have supported demand for grocery-anchored shopping centers. The deal also comes as institutional investors increasingly target grocery-anchored and other open-air retail properties due to tenant demand and limited supply.

JLL’s team included Tyner, Geoff Tranchina, Gleb Lvovich and Eric Kathrein. The debt advisory team included Kevin MacKenzie, Spencer Bergthold and John Marshall.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.

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