This week saw Phillips Edison – ARC Grocery Center REIT II (Grocery REIT II) purchase a California-based shopping center for approximately $19.2 million, exclusive of closing costs.
Laguna 99 Plaza is located in Elk Grove, California and consists of 89,188 rentable square feet and is situated on nine acres of land. Currently 77% leased to 21 tenants, Walmart Neighborhood Market occupies 38,520 rentable square feet of the property and anchors the plaza as a market-leading grocery store chain. Other tenants at the plaza include GNC, Goodwill, and Metro PCS.
Grocery REIT II is a non-traded REIT that seeks to acquire and manage well-occupied grocery-anchored neighborhood shopping centers that have both national and regional retailers that sell necessity-based goods and services. It also looks to acquire properties in strong demographic markets throughout the United States.
Purchased from GD Development Company LLC, a California limited liability company, Grocery REIT II funded the acquisition with proceeds from its ongoing offering.
Co-sponsored by Phillips Edison and AR Capital, the REIT has a strong acquisitions pipeline managed by its in-house team.
Effective in November of 2013, Grocery REIT II had raised about $221 million through the end of June, 2014.