Investment Firm Buys 6 Walmart Neighborhood Markets

The Hampshire Cos., a full-service, private real estate investment firm based in Morristown, N.J., has acquired six Walmart Neighborhood Markets in southern Louisiana from Columbus, Ohio-based Skilken Gold Real Estate Development. The properties were acquired in a joint venture with Hana Asset Management Co., of Seoul, South Korea, and several of its institutional and retail investors.

The six newly constructed free-standing retail stores are located in Houma, Meraux, New Iberia, Opelousas, Prairieville and Thibodaux. Each former Neighborhood Market measures around 42,000 square feet, and all are fully leased, single-tenant buildings.

“We continue to see foreign investors looking to utilize capital to purchase core investments with well-known, strong tenants in mature and established markets across the country,” noted Robert T. Schmitt, a principal of The Hampshire Cos. “Our knowledge of the U.S. real estate market, global economy, and proven, cycle-tested investment strategies made us an ideal partner for this investment with our South Korean partners. We look forward to continuing to work with them to target asset classes that align with our investment strategy and their long-term goals.”

“Our decision to acquire this portfolio of assets in southern Louisiana was motivated by Walmart’s focus on long-term sustainable growth and our strategy of acquiring stable, core assets in strong marketplaces,” added John Goldsmith, a portfolio manager for The Hampshire Cos. “Walmart’s Neighborhood Market concept was developed with the current and future needs of consumers in mind and will allow these six stores to serve their local markets well into the future and offer us stable income-generating assets.”

With a market share of 40 percent, Walmart is the No. 1 grocer in Louisiana. Targeting more mature urban and suburban markets, Neighborhood Markets offer a full selection of groceries, a pharmacy and health and beauty care items, along with a limited assortment of general merchandise. Bentonville, Ark.-based Walmart currently operates 699 stores under the format in 31 states and Puerto Rico.