New JV Acquires Four Virginia Grocery-Anchored Shopping Centers for $110M
By Andrew Coen June 2, 2023 2:33 pm
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Rosenthal Properties, FarmViewVentures and HIG Realty Partners have formed a venture partnership to spend $110 million for four grocery-anchored shopping centers in the Richmond, Va., area, Newmark (NMRK) announced Wednesday.
The four-property portfolio spans 592,000 square feet and is roughly 95 percent leased with tenants that include Wegmans, Walmart, The Fresh Market and Aldi. The shopping centers have approximately 60 tenants, which provides the sponsorship with “attractive cash-on-cash on yields,” according to Newmark, whose Jordan Roeschlaub, Dustin Stolly, Chase Tagen and Hudson Barineau arranged the JV. The seller of the portfolio was not disclosed.
“With a diversified rent roll and long-term leases, the portfolio comprises some of the most credit-worthy tenants in the retail industry,” Roeschlaub said in a statement.
The portfolio includes the 22-tenant Stonehenge Village Shopping Center on 12501-12715 Stone Village Way in Midlothian, Va., which is anchored by Wegmans. Other properties the JV acquired include Parham Plaza on 1502-1532 North Parham Road in Richmond anchored by Walmart; Ridge Shopping Center on 1503- 1567 North Parham Road in Richmond, which is anchored by The Fresh Market; and Staples Mill Square on 8943-9097 Staples Mill Road in Henrico, which is anchored by Aldi.
“This opportunity was well received by the capital markets community as Richmond has seen a large influx of institutional capital from pension funds, overseas investors, and private equity firms,” Stolly said. “Richmond has benefited during the post-COVID environment as net migration and job growth have continued to benefit the regional economy.”
The deal is the second JV that Newmark recently arranged. In March, Newmark arranged a $500 million JV equity partnership with Castle Park Investments to target manufactured housing opportunities throughout the U.S.
Spokespeople for Rosenthal Properties, FarmViewVentures and HIG Realty did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
