The 121,000sq ft Des Peres Corners open-air shopping centre in the St. Louis suburbs has new owners after being acquired by Cohen & Steers Income Opportunities REIT (CNSREIT) and Phillips Edison & Company, Inc.
The acquisition was made through a programmatic joint venture targeting $300M in equity and owned 80 per cent by CNSREIT and 20 per cent by PECO.
Located in Des Peres, Missouri, Des Peres Corners was built in 2009 and is anchored by a 74,000sq ft Schnucks grocery store. The property is 90 per cent occupied, with other tenants including local business and well-known eateries such as Five Guys and Jimmy John’s. Des Peres is recognised as a top suburban market for its proximity to high-profile employers in the area, 30 colleges and universities and a highly-rated local school system.
The joint venture between the two real estate firms will focus on grocery-anchored open-air centres. Open-air shopping centres are at their highest occupancy level of the past 16 years at 95.7 per cent, according to real estate analytics provider CoStar Group.
“We are pleased to partner with CNSREIT on this joint venture and first acquisition,” said Jeff Edison, Chairman and CEO of PECO. “This joint venture increases PECO’s access to growth capital and increases the acquisition universe available to us. We believe this joint venture will generate attractive returns for both partners.”
