Cohen & Steers Expands Portfolio with Acquisition of New Shopping Center

Cohen & Steers Expands Portfolio with New Acquisition

In a significant stride towards expanding its real estate portfolio, Cohen & Steers Income Opportunities REIT, Inc. (CNSREIT) has announced the acquisition of the Rio Hill Shopping Center, a grocery-anchored open-air retail space located in Charlottesville, Virginia. This acquisition marks a continued partnership with Phillips Edison Company (NASDAQ: PECO)—a leading player in grocery-anchored shopping centers—and stands as CNSREIT's third joint venture with this esteemed operator.

Spanning over 288,000 square feet, the Rio Hill Shopping Center is strategically positioned just five miles northeast of downtown Charlottesville. This shopping center is not merely an addition to CNSREIT's real estate holdings but represents key market growth, with anchor tenants including Kroger and two distinct concepts from TJX Companies. The affluent neighborhood surrounding the center boasts an impressive median household income of $81,000 within a three-mile radius, highlighting its potential in a thriving community.

Since 2015, Charlottesville has experienced population growth exceeding the national average alongside a remarkable 52% growth in median household income. This development serves as a lucrative environment for retail businesses, particularly those offering essential goods and services.

Insight from Leadership

James S. Corl, CEO of CNSREIT and Head of the Private Real Estate Group at Cohen & Steers, emphasized the strategic importance of this acquisition: “We consider the Rio Hill Shopping Center a premiere property in a rapidly advancing market. Its solid grocery anchor and reliable inline tenants make it a valuable addition to our growing portfolio of necessity-driven shopping centers.” Corl's optimism is reflective of Charlottesville's enduring appeal, particularly with the presence of the esteemed University of Virginia, which Corl believes distinguishes this market from other college towns that may not experience similar positive trajectories.

CNSREIT has been diligently focusing on acquiring high-quality properties with an aim to produce strong income potential, particularly emphasizing well-anchored, necessity-driven shopping centers. Presently, open-air shopping centers have reached an occupancy rate of 95.7%, the highest in 16 years, according to the real estate analytics firm CoStar Group.

About the Players Involved

Cohen & Steers Income Opportunities REIT, Inc. is a non-listed perpetual-life REIT concentrating primarily on high-quality, income-focused, and stabilized properties across the United States. This firm operates under the management of Cohen & Steers Capital Management, Inc., which has garnered a robust reputation within the investment management sector.

Phillips Edison Company, recognized as one of the largest owners and operators of grocery-anchored neighborhood shopping centers in the nation, has demonstrated exceptional results within its vertical operating model. As of September 30, 2025, PECO managed 328 shopping centers, further emphasizing its dedication to enhancing community experiences through strategic property management.

Conclusion

Cohen & Steers' acquisition of the Rio Hill Shopping Center exemplifies a calculated decision to not only grow its portfolio but also diversify its investment strategy by aligning with reputable operators like Phillips Edison Company. With increasing investor interest in necessity-based retail assets, this acquisition reflects a keen understanding of evolving market dynamics, placing CNSREIT in a strategic position to capitalize on continued growth in the retail shopping sector.