Six months after CBRE Group Inc. was appointed to sell the almost 1.4 million square foot Phillips-Edison Fund IV portfolio, the nine retail properties have been sold to Newquest-Epic Investment LLC, with a reported REIT of $150m on this deal.
The properties were sold as a combined package, with no purchase option for single properties. It is the 159400ft² Village Center, based in Phoenix, Arizona’s Paradise Valley which attracted the most attention. There is a very successful Target store which has a below-market ground lease. The property has performed well since its development during 1986 and the vice president of CBRE, Jesse Goldsmith, is of the opinion that it will garner more success in the future.
Two Illinois assets are included in the Fund IV collection. The first is at Glidden Crossing in De Kalb and the other is Prairie Point in Aurora. There are two properties in Omaha, Nebraska – Plaza North and Deerfield Place. A further two properties are Hermiston Plaza and Johnson Creek, based in Hermiston and Happy Valley in Oregon, respectively. The final properties in the six-state package are Silver State in Sparks, Nevada and Marketplace in Independence, Missouri.
Six of the properties have grocery stores as anchors and three others, including Village Center, meet with the standards required for Class A. This makes the package unique due to the lack of class A products which are currently available for sale.