Publix-anchored Shopping Center Acquired by REIT

Phillips Edison – ARC Shopping Center REIT Inc., a publicly registered, non-traded real estate investment trust (REIT), has acquired the St. Charles Plaza, a 65,000-square-foot shopping center in Haines City, Fla., for about $10.1 million. The shopping center is anchored by Publix Supermarket, which occupies 45,600 square feet on a long-term lease through October 2027. Other tenants include Verizon Wireless, Crispers (a restaurant chain Publix is selling), Publix Liquor and Hair Cuttery.

Built in 2007, the St. Charles Plaza is located in a densely populated area that has experienced over 5 percent annualized population growth during the past 10 years, according to the Cincinnati-based company, which said it was able to purchase property on favorable terms through a bankruptcy auction.

“This acquisition is consistent with our business strategy to acquire grocery-anchored shopping centers located in infill and growing markets,” noted Phillips Edison COO Mark Addy. “We believe this purchase delivers the key elements of our business plan: a stable and growing income stream anchored by the area’s dominant grocer and located in a highly trafficked area. And because we were able to buy this asset for what we believe is a great price and finance it using debt with attractive terms, this transaction will be accretive to shareholder value.”

Publix is the dominant grocer in the region, maintaining a 40.2 percent market share, with the St. Charles Plaza location experiencing strong sales growth over the past three years, said Phillips Edison, adding that the shopping center provides a stable rental stream, with 75.6 percent of the gross rents coming from Publix and other national and regional retailers.

Phillips Edison invests mainly in necessity-based neighborhood and community shopping centers throughout the United States, with a focus on well-located grocery-anchored shopping centers. It is the first public, non-traded investment vehicle to allow retail investors to capitalize on the growing market segment of grocery-anchored retail centers. The company currently has a nationwide portfolio of 250 neighborhood shopping centers in 35 states.

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