SJC Ventures Forms $1B Partnership to Build East Coast Retail Centers

SJC Ventures, an Atlanta-based developer of retail assets in the eastern U.S., has teamed with an undisclosed global life insurance company to build grocery-anchored retail projects along the East Coast.

SJC, which currently has multiple sites in pre-development with anchor leases signed and in place, will use the insurance firm as a “programmatic joint venture equity partner to develop a pipeline of ground-up organic grocer-anchored retail centers and adjacent luxury multifamily developments,” according to a release from Cushman & Wakefield, which arranged the joint venture.

“This venture represents a major milestone within SJC’s strategy to blend high-quality, grocery-anchored retail with well-positioned multifamily developments in strategically selected markets,” C&W’s John Alascio, who advised SJC in the deal along with Alex Hernandez, Aaron Graves, Mitch Rothstein and Mark Gilbert, said in a statement.

The JV — which received an initial $300 million equity tranche — has already closed on three seed projects consisting of 197,000 square feet of retail across two shopping centers and a 341-unit multifamily building, C&W said. 

Those projects include the Shops at Broadcasting District, a 121,602-square-foot Whole Foods-anchored retail development in Wyomissing, Pa., and the adjacent 341-unit Residences at Broadcasting District luxury multifamily development. The C&W team arranged a $44 million floating-rate construction loan from Truist for the retail center, as well as a $69 million construction loan from Truist for the residential component, according to the release.

In addition, the team has closed on Wesley Chapel Station, another Whole Foods-anchored shopping center comprising 76,000 square feet of retail in Wesley Chapel, Fla. SJC secured a $30 million, floating-rate loan from Seacoast Bank for construction of that project, C&W said.

And, with a development pipeline totaling nearly $1 billion in projected capitalization, the JV isn’t slowing down anytime soon, as they have more developments pending in Florida, Georgia, Maryland and Virginia, Alascio said. Most of the projects will “target affluent markets with strong tenant appeal and economic resilience,” according to the release.

“We are delighted to embark on this program with such an extraordinary partner,” Fain Hicks, principal at SJC, said in a statement. “With this venture, we will continue our long track record of serving our valued tenant partners, all other stakeholders, and delivering projects that energize and enhance communities.”

Isabelle Durso can be reached at idurso@commercialobserver.com.