Shopping Center REIT

Shopping Center REIT Launched, Already Owns 46 Grocery-Anchored Centers

10/9/17 —  A new shopping center REIT has been launched by Davidson Kempner Capital Management. ShopOne Centers REIT Inc. is a private real estate investment trust that will focus on purchasing, operating, and managing shopping centers with a grocery-anchored tenant.

ShopOne already has a high-quality and diverse portfolio, with owning and/or managing 46 shopping centers in 8 states. The centers range from Michigan to Georgia and have more than 4.65 million square feet of gross leasable space.

ShopOne’s goal is to acquire shopping centers in densely populated and strong markets across the U.S. They are also looking to acquire assets by taking advantage of dislocation in the retail marketplace and enhance value through improvements.

“We believe strongly in the long-term fundamentals supporting continued investment in shopping centers anchored by top-performing grocers, leading discounters and off-price apparel retailers,” says ShopOne CEO Michael Carroll.

“We intend to be very active in the market as we seek to grow our portfolio and gain scale in high-density, in-fill metro areas. With a proven operating platform, deep institutional knowledge of the dynamic retail landscape and an extensive professional network, we are well-positioned to carry out our business objectives,” Carroll continues.

Retailers such as restaurants, grocery stores, and fitness centers continue to thrive even with challenges in the retail industry. These types of businesses are “necessity-based” so there tends to be a need for these products and services. New developments are low, while the retail industry continues to have high occupancy.

ShopOne is keeping the momentum going by recently acquired Conyers Commons, a 118,420-square-foot shopping center in Conyers, GA, for $8.97 million. The center is anchored by Target and has a great location. Other national tenants include Ross Dress for Less, Kirkland’s, Mattress Firm, FedEx Office, and Panda Express.