LOS ANGELES AND SAN FRANCISCO — CBRE Global Investment Partners has acquired a 45 percent stake in a $1.5 billion portfolio of 55 retail assets located on the West Coast.
The investment was made on behalf of the company’s flagship Global Alpha Fund and various separate account clients and totals roughly $450 million, according to reports by The Wall Street Journal.
San Francisco-based Merlone Geier Partners (MGP) is the majority owner in the portfolio, which totals nearly 7 million square feet, and will maintain its position as operating partner.
The properties are largely anchored by grocery and necessity-based retailers, and are concentrated in Southern California, Seattle, Sacramento, the San Francisco Bay Area and Portland.
“This joint venture gives us a rare opportunity to access for our clients a large diversified portfolio of high-quality retail centers that would be challenging to acquire in scale,” says Ian Gleeson, CIO for CBRE Global Investment Partners. “We are pleased to partner with Merlone Geier because it is a leading operator that has significant experience in the retail sector.”
Eastdil Secured advised MGP in the transaction.
MGP is a private real estate investment company focused on the acquisition, development and redevelopment of retail and mixed-use properties on the West Coast. To date, the company has acquired 141 properties totaling over 23 million square feet.
CBRE Global Investment Partners, a division of Los Angeles-based CBRE Global Investors, uses private funds, secondaries, co-investments and joint ventures to create investment portfolios for its clients. The division had $15.2 billion in assets under management as of September 30.
— Katie Sloan