Public, non-traded REIT, Phillips Edison-ARC Grocery Center REIT II, announced today that it has acquired its first grocery-anchored shopping center. The property, Bethany Village Shopping Center, is located in Alpharetta, Georgia, which is a suburb of Atlanta.
The 81,674 square foot property was purchased for approximately $11.2 million, exclusive of closing costs. 51,674 square feet of the center are rented by Publix grocery store, which is the leading grocer by market share in the Atlanta area. The property also features other national tenants such as Subway and Marco’s Pizza. Currently, Bethany Village is 93.3% leased to 12 tenants.
Jeff Edison, CEO of the REIT, commented, “Anchored by a leading grocer and backed by solid real estate fundamentals, Bethany Village sets the example for the types of properties we will look to acquire. It serves as a great foundation as we continue to build our portfolio based on tenant, geographic, industry, lease term and credit diversification. “
The acquisition was funded by proceeds from the REIT’s initial public offering, which is still open to new investors. Phillips Edison-ARC Grocery Center REIT II seeks to acquire neighborhood shopping centers that are anchored by a grocery store and have a mix of national and regional tenants. The REIT is co-sponsored by Phillips Edison & Company and AR Capital, LLC and has an offering size of $2 billion.