CHICAGO— Pine Tree, a Chicago-based owner and operator of open-air shopping centers, has acquired a sponsor interest in a 10-property retail portfolio appraised at $644 million, expanding its presence across major U.S. markets and increasing its assets under management to more than $4 billion.
The transaction, announced Oct. 20, involves an interest acquired from SITE Centers (NYSE: SITC) in partnership with a large international investor. The portfolio encompasses approximately 3.5 million square feet across nine states, with properties located in major U.S. metropolitan areas.
The acquisition brings Pine Tree’s total acquisition activity over the past 12 months to more than $1 billion. The company said the transaction marks the second off-market portfolio deal between Pine Tree and SITE Centers, with a combined asset value exceeding $1.1 billion. It is also the largest transaction in Pine Tree’s 31-year history.
“This is the second off-market portfolio transaction between SITE Centers and Pine Tree, with a total asset value of over $1.1 billion, and the single-largest transaction in our 31-year history,” said Peter Borzak, CEO and co-founder of Pine Tree. He added that the company looks forward to its relationship with the institutional investment partner.
Grocery-anchored centers underpin investment strategy
The portfolio consists primarily of grocery-anchored shopping centers featuring a mix of national retailers, regional chains, discount stores, home goods merchants and specialty retailers. Major tenants across the properties include Target, Sam’s Club, Publix, ALDI, Sprouts Farmers Market, Food Lion, The Fresh Market, Lowe’s, DICK’S Sporting Goods, Best Buy, Marshalls, HomeGoods and Ross Dress for Less.
Pine Tree plans to capitalize on opportunities to increase rental income as existing leases expire and rents are adjusted to prevailing market rates.
“The portfolio presents compelling opportunities to capture embedded upside through mark-to-market rent growth over the anticipated holding period,” said Conor Bossy, chief investment officer at Pine Tree. He said the properties align with the company’s strategy of acquiring large-format shopping centers with grocery components in the top 50 U.S. metropolitan statistical areas.
Portfolio spans nine states
The 10 properties are located in Arizona, South Carolina, Illinois, Virginia, Connecticut, Missouri, North Carolina, New York, Georgia and North Carolina’s neighboring state of North Carolina?
The portfolio includes the following shopping centers and major retailers:
- Ahwatukee Foothills Towne Center — Phoenix, Arizona: Sprouts Farmers Market, Best Buy, Burlington, Marshalls, HomeGoods and Ross Dress for Less.
- Ashley Crossing — Charleston, South Carolina: Food Lion and Marshalls.
- Brookside Marketplace — Chicago, Illinois: Target, DICK’S Sporting Goods, Best Buy, HomeGoods and TJ Maxx.
- Commonwealth Center — Richmond, Virginia: Target, The Fresh Market, Old Navy and Ulta Beauty.
- Connecticut Commons — Hartford, Connecticut: ALDI, Lowe’s, DICK’S Sporting Goods and Marshalls.
- Independence Commons — Kansas City, Missouri: Best Buy, Marshalls, Ross Dress for Less and Bob’s Discount Furniture.
- Poyner Place — Raleigh, North Carolina: Target, Ross Dress for Less, Marshalls, Old Navy and World Market.
- Route 22 Retail Center — New York metropolitan area: Target and DICK’S Sporting Goods.
- Towne Center Prado — Atlanta, Georgia: Publix, Ross Dress for Less, Barnes & Noble and Petco.
- University Centre — Wilmington, North Carolina: Sam’s Club, Lowe’s, Ross Dress for Less, Old Navy and Bob’s Discount Furniture.
The portfolio’s combination of grocery anchors and established national retailers provides exposure to everyday consumer spending and a broad range of retail categories.
Pine Tree expands national retail real estate footprint
Founded in 1995, Pine Tree is a vertically integrated retail real estate company headquartered in Chicago. The company owns or operates more than $4 billion in retail real estate assets encompassing approximately 20 million square feet of open-air retail space across the United States.
The latest acquisition reinforces Pine Tree’s focus on large-format shopping centers in major metropolitan markets, particularly properties with grocery anchors and opportunities for rental growth.
The transaction also underscores continued investment activity in established retail properties, where investors can pursue income growth through leasing opportunities and the repositioning of existing assets.
Pine Tree is a Chicago-based, vertically integrated retail real estate company founded in 1995. The company owns or operates more than $4 billion in assets and approximately 20 million square feet of open-air retail properties across the United States.
