#United States #Orlando #Cohen Steers #Publix #Oak Grove Shoppes

Cohen & Steers Income Opportunities REIT, Inc. Acquires Oak Grove Shoppes in Orlando

In a significant move aimed at expanding its real estate portfolio, Cohen & Steers Income Opportunities REIT, Inc. (CNSREIT) recently announced its acquisition of Oak Grove Shoppes, a grocery-anchored shopping center located in Orlando, Florida. This acquisition is a collaboration with Phillips Edison & Company (NASDAQ: PECO), a prominent player in the grocery-anchored shopping center market.

Strategic Joint Venture

This transaction marks the second acquisition under a strategic joint venture formed between CNSREIT and PECO. The joint venture plans to deploy $300 million in equity, with CNSREIT holding an 80% ownership stake and PECO 20%. The initiative underscores a strong commitment to acquiring open-air shopping centers anchored by grocery stores, capitalizing on the expertise offered by PECO in this sector.

Details of Oak Grove Shoppes

The Oak Grove Shoppes encompass a substantial 142,000 square feet, recently redeveloped in 2023, and is strategically located in the Altamonte Springs submarket, just nine miles from downtown Orlando. The center is currently 91% leased and prominently features a 48,000 square foot Publix grocery store, alongside a newly opened Marshalls and a variety of tenants from the food, healthcare, and childcare sectors.

This shopping center stands to benefit remarkably from its location in Orlando, a fast-growing market that ranks within the top 10 U.S. cities for five-year population and job growth, significantly outperforming national averages. The area boasts around 2.8 million residents, making Orlando the 22nd largest metropolitan area in the United States, alongside attracting 74 million annual visitors. Additionally, the Altamonte Springs submarket exhibits a commendable 94% retail occupancy rate and an impressive year-over-year retail rent growth of 7.5%.

Insights from Leadership

James S. Corl, CEO of CNSREIT and Head of the Private Real Estate Group at Cohen & Steers, expressed confidence in the acquisition. He remarked, “We believe Oak Grove Shoppes is well-positioned to continue benefiting from its best-in-class infill location in a high-growth market.” Corl emphasized the potential for strong demand for retail space driven by necessity-based foot traffic generated by robust grocery anchors.

Jeff Edison, CEO and Chairman of Phillips Edison Company, echoed similar sentiments, expressing enthusiasm for the partnership with CNSREIT. Edison highlighted how this joint venture provides PECO with necessary growth capital, paving the way for a wider acquisition scope while optimizing their operational platform.

Future Focus and Market Trends

CNSREIT remains committed to acquiring high-quality properties that yield attractive income potential, primarily focusing on well-anchored, necessity-driven shopping centers. Market data reveals that open-air shopping centers have reached a 16-year high occupancy rate of 95.7%, indicating robust demand for such properties in the current landscape.

About the Companies

Cohen & Steers Income Opportunities REIT, Inc. is designed to invest primarily in high-quality, income-producing, stabilized properties across the United States. The firm is externally managed by Cohen & Steers Capital Management. On the other hand, Phillips Edison Company stands as one of the largest operators in the grocery-anchored shopping center landscape, with an emphasis on providing essential goods and services in strong markets throughout the U.S.

For further details about CNSREIT, you can visit CNSREIT and for more insights related to Phillips Edison Company, visit Phillips Edison.