DESCO PARTNERS WITH USAA FOR SCHNUCKS PORTFOLIO
CLAYTON, MO., AND SAN ANTONIO — Clayton-based The DESCO Group, a retail development company owned by the same people as the Schnucks grocery store chain, has found a partner for a portfolio of 28 Schnucks-anchored retail centers. San Antonio-based USAA Real Estsate Co.will invest in the portfolio with DESCO, which will remain the managing partner.
The portfolio contains a total of 2.3 million square feet of space. Schnucks is the anchor for all of the centers. The properties are located throughout Illinois, Indiana, Missouri and Tennessee.
Australian REIT Charter Hall and Jacksonville, Fla.-based REIT Regency Centers Corp. previously owned a stake in the portfolio with DESCO. However, reports indicate that Charter Hall has decided to sell its U.S. assets, and Regency exited the partnership this month in exchange for an ownership stake in four St. Louis-area shopping centers.
Eastdil Secured served as investment banker of record for the deal, and Iron Tree Capital provided advisory services.
DESCO currently controls a portfolio of 174 retail, office and industrial properties totaling approximately 12 million square feet. USAA has approximately $7 billion in assets under management.
— Coleman Wood