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Building on Retail Strategy, J.P. Morgan REIT Acquires Grocery-Anchored Retail Shopping Center in Queens

J.P. Morgan Real Estate Income Trust Inc., a non-listed perpetual life real estate investment trust, acquired a 95% interest in Shops at Grand Avenue, a 99,837-square foot, 100% leased, Class A grocery–anchored shopping center in the Maspeth neighborhood of Queens, N.Y. This acquisition is part of a strategic joint venture to pursue retail opportunities with Acadia Realty Trust (NYSE: AKR), an equity real estate investment trust. The total purchase price was $48 million (exclusive of closing costs), bringing the total asset value of the JPMREIT portfolio to more than $400 million.

This investment represents the first last-mile retail investment for JPMREIT. The Shops at Grand Avenue is a neighborhood retail center anchored by Stop & Shop, a major supermarket. The property is located in the heart of a dense residential neighborhood with roughly one million people residing within a three-mile radius.

JPMREIT seeks to provide individuals with access to income-producing, institutional quality real estate with a minimum investment of $2,500, applying to Class S, D, and T shares. Class I shares have a minimum investment of $1 million.

“Driven by a resilient consumer and the increasing importance of service consumption, the neighborhood shopping center sector continues to be a bright spot in commercial real estate,” said Doug Schwartz, co-president of JPMREIT. “We believe our focus on assets close to the consumer in supply-constrained, densely populated areas is a valuable component of our last-mile retail strategy.”

“The Shops at Grand Avenue represents execution of our ‘new economy’ strategy, which focuses on a post-pandemic perspective of consumption, housing, and work,” added Schwartz.

According to the REIT, JPMREIT’s new economy approach focuses on growing property types and locations. It allocates 25% to property development and invests internationally as strategic opportunities arise.

  • Logistic growth opportunities include last-mile: warehouses, logistics terminals, services and recreation, and healthcare.
  • Residential growth opportunities include newly built single-family rentals, apartments in high-growth locations, affordable housing, and age-restricted housing.
  • Tech growth opportunities include flexible, tech-enabled offices in innovation hubs; and life sciences.

J.P. Morgan Real Estate Income Trust leverages J.P. Morgan Asset Management’s more than 60 years of real estate investment experience and invests in stabilized, income-producing assets and development. J.P. Morgan Asset Management, with assets under management of $3.2 trillion as March 31, 2024, is a global leader in investment management supporting clients such as institutions, retail investors, and high-net-worth individuals in every major market throughout the world.

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