Cohen & Steers REIT Makes First Acquisition
Cohen & Steers Income Opportunities REIT Inc., a non-traded REIT sponsored by investment management firm Cohen & Steers (NYSE: CNS), announced its acquisition of the Marketplace at Highland Village, an open-air community shopping center located in Dallas. The acquisition was made through a joint venture with Sterling Organization, a real estate investment firm with extensive expertise in shopping centers in the United States.
The acquisition is the first investment by the REIT, which launched an offering in February 2023 that seeks to raise up to $3 billion.
The approximately 451,000-square-foot Marketplace at Highland Village was built in 2006 and includes a Walmart-owned Supercenter. The acquired premises comprise nearly 207,000 square feet and are approximately 93% occupied by tenants including TJ Maxx, HomeGoods, LA Fitness, DSW, and Petco. The property was the most visited shopping center within a 10-mile radius in 2022, drawing 4.3 million visits, according to location analytics provider PlacerAI.
“…We believe the Marketplace at Highland Village represents an attractive investment opportunity given its dominant position at a critically important retail node serving a very desirable submarket,” said James S. Corl, chief executive officer of Cohen & Steers Income Opportunities REIT. “We are also excited to enter into a partnership with Sterling and believe they are the partner of choice for this type of center – considering their national footprint, their 25-year track record, and our team’s long history of working together on shopping center investments.”
Open-air shopping centers are at their highest occupancy level of the past 16 years at 95.8%, according to real estate analytics provider CoStar Group.
Cohen & Steers Income Opportunities REIT, Inc., is a perpetual-life, non-listed REIT formed to invest primarily in high-quality, income-focused, stabilized properties within the United States. CNSREIT is externally managed by Cohen & Steers Capital Management, Inc., a subsidiary of Cohen & Steers, Inc. Cohen & Steers, founded in 1986, is a leading global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. The firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.
Sterling Organization is a vertically integrated private equity real estate firm whose national platform is focused on investing in retail, LAST HOUR® consumer fulfillment and distribution real estate assets across the risk spectrum in major markets within the United States. The firm has approximately $2 billion of assets under management across the nation, including more than 12 million square feet of primarily retail real estate. Sterling Organization, with offices across the nation, is headquartered in West Palm Beach, Fla.
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