JLL Arranges $295M Sale of Stop & Shop-Anchored Grocery Portfolio in Northeast
QUINCY, MASS. — JLL Capital Markets has arranged the $295 million sale of a portfolio of 11 single-tenant retail buildings net leased on a long-term basis to Stop & Shop in markets throughout Connecticut, Massachusetts and Rhode Island. JLL marketed the portfolio on behalf of the sellers, Winstanley Enterprises and Surrey Equities. The Inland Real Estate Group of Cos. Inc. was the buyer.
Additionally, JLL arranged two acquisition loans totaling approximately $158 million on behalf of the new owner. The two 10-year, fixed-rate loans were originated by JLL through a life insurance company and a CMBS lender.
The 11 buildings in the portfolio are all net leased to Stop & Shop, a division of Ahold Delhaize USA Inc., which is the third-largest supermarket operator in the U.S. Quincy, Mass.-based Stop & Shop is the No. 1 grocer by market share in Connecticut, Massachusetts and Rhode Island, according to JLL. The 748,141-square-foot portfolio includes three properties in the Boston area; one in the Cape Cod, Mass. area; four in the Providence, R.I. area; and three in the Hartford, Connecticut area.
According to a JLL research report, titled “U.S. Grocery Tracker 2021,” grocery-anchored retail centers continue to be investors’ preferred retail property type and will continue to be so through the remainder of the pandemic. Consequently, JLL anticipates there will be cap rate compression over the next 12 to 18 months.
Nat Heald, Jose Cruz, Chris Angelone and Matthew Sherry of JLL represented the seller, while Lauren O’Neil and Elliott Throne of JLL represented the new owner. Matthew Tice of Inland Real Estate Acquisitions LLC facilitated the acquisition on behalf of Inland.
“This portfolio’s established and necessity-based footprint, combined with 20-year leases at all 11 properties in strong market locations, is an ideal example of the opportunities we seek to acquire as we move further into 2021,” says Tice.
Winstanley Enterprises LLC is a commercial real estate investment firm based in Concord, Mass. Surrey Equities LLC is a Fort Myers, Fla.-based real estate investment and management firm that currently owns real estate in Florida, Massachusetts, New York and Connecticut. Inland is a commercial real estate and finance firm based in Oak Brook, Ill.
— Julia Sanders