PITTSBURGH — TPG Real Estate has acquired ECHO Realty, a full-service owner and operator of grocery-anchored retail real estate, in a transaction valued at $2 billion. TPG, a global asset management firm based in San Fransisco, partnered with global investment groups PSP Investments, La Caisse and Norges Bank Investment Management for the transaction.
“Our more than two decades of building and operating neighborhood, necessity-based shopping destinations demonstrate the enduring demand for grocery-anchored retail close to home,” says Thomas Karet, founder and CEO of ECHO. “With TPG’s investment and business-building expertise, we are confident ECHO is well-positioned to capitalize on demand for necessity-based shopping in key, high-performing markets.”
Founded in 2000, ECHO owns and operates approximately 230 retail centers across the Midwest and Southeast U.S. markets, anchored by grocery and convenience stores such as Giant Eagle, Publix, Harris Teeter, Safeway, ACME Markets, Whole Foods Market and Alimentation Couche-Tard (GetGo).
Since inception, the Pittsburgh-based company has acquired and developed more than 16 million square feet of neighborhood and regional centers. Notable shopping centers and properties owned by ECHO Realty include:
- The Meridian (Pittsburgh)
- Edinboro Commons (Edinboro, Pa.)
- Village Center (Bethel Park, Pa.)
- The Shoppes at Highland Creek (Charlotte, N.C.)
- Regency Village (Huntersville, S.C.)
- Miller Street Market (Winston-Salem, N.C.)
- Paradise Plaza (Sarasota, Fla.)
- The Bridges (Carmel, Ind.)
The TPG-led investor group will partner with ECHO’s management team to scale the business across existing and new markets, while advancing acquisition initiatives and further strengthening leasing and property management, as well as ECHO’s boutique retail brokerage platform, ECHO Retail, according to the press release.
“Grocery-anchored retail, underpinned by an essential-use tenant base, is a high-conviction opportunity that fits our long-term strategy,” says Simon Marc, senior vice president and global head of private equity and real estate investments at PSP Investments.
Eastdil Secured and BMO Capital Markets acted as financial advisors to TPG, while Eastdil Secured additionally served as debt placement agent. Kirkland & Ellis LLP served as legal counsel.
BofA Securities served as exclusive financial advisor to ECHO, while Skadden, Arps, Slate, Meagher & Flom LLP acted as the company’s legal counsel. Sterlington PLLC served as legal counsel to ECHO management.
— Abby Cox