Sterling Group has acquired at a chapter public sale Plaza Mexico, a 403K SF grocery- and pharmacy-anchored purchasing heart positioned on a 33-acre infill property in Lynwood, Ca.
Identified for its iconic design and sturdy occasion calendar, Plaza Mexico was acquired for $165M by Sterling’s institutional value-add fund, Sterling Worth Add Companions III. JLL suggested on the sale.
Anchored by Meals 4 Much less and a Ceremony Support pharmacy, the property additionally incorporates a Mercado, which homes greater than 200 distinctive distributors.
“Plaza Mexico presents an extremely uncommon alternative to reestablish and reposition one of many extra dynamic, distinctive and well-known group facilities in Los Angeles,” stated Brian Kosoy, CEO of Sterling Group, in an announcement.
Sterling stated the acquisition brings the corporate’s US portfolio to 75 properties with 12.5M SF of leasable area with an total worth of $2.7B.
The corporate’s nationwide acquisition technique is targeted on what it has branded LAST Hour shopper success and distribution belongings. In current weeks, Sterling has been shopping for grocery-anchored purchasing facilities.
On the finish of final month, Sterling acquired a portfolio of two grocery-anchored purchasing facilities encompassing 280K SF. The Grove, positioned in Orlando, and the Riverfront Plaza in NJ have been bought for $114 by the Sterling United Properties fund, GlobeSt.com reported.
The Grove, positioned in one of the prosperous communities in Florida in Windermere, is a 152K SF purchasing heart anchored by Publix; the Riverfront Plaza in Hackensack, NJ is a 129K SF purchasing heart anchored by ShopRite.
In response to JLL’s Q1 2022 Grocery Tracker report, grocery-anchored retail had the most important share of retail property acquisitions in 2021, totaling $13.3B in gross sales. Final 12 months noticed a document variety of grocery-anchored retail property transactions with 735 complete trades, 13 greater than the earlier document set in 2014, the report stated.
Public REITs jumped into the marketplace for grocery-anchored retail in an enormous method in 2021, led by Kimco’s $425M acquisition of Jamestown’s Grocery & Progress Assortment. Because of elevated demand for grocery-anchored retail, the market noticed a cap-rate compression of practically 50 bps final 12 months from 2019 ranges, JLL stated.
Groceries normally have been the massive winners throughout the pandemic, with gross sales topping $800B final 12 months, a 16% improve. In response to CBRE, grocery-anchored purchasing facilities in 4Q 2021 recorded their second-most lively quarter in a decade.
