JLL Capital Markets announced today it arranged $154.1 million in financing for a six-property, 1.31-million-square-foot retail portfolio spanning California, Arizona and Georgia.
JLL worked on behalf of the borrowers, Kimco Realty Corporation and an institutional joint venture partner, to secure financing through institutional investors advised by J.P. Morgan Asset Management.
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The portfolio includes Morena Plaza in San Diego, Rancho San Diego in El Cajon, Vail Ranch Plaza and Redhawk Towne Center in Temecula, North Decatur Station in Decatur and The Summit at Scottsdale in Scottsdale.
The portfolio is 99% occupied with a 4.6-year weighted average lease term and features dominant grocery anchors including Costco, Walmart, Whole Foods, Sprouts Farmers Market and Safeway. The properties collectively draw more than 17 million annual consumer visits, with anchor locations consistently ranking in the top 5% to 10% nationally by visits within their respective banners. National tenants occupy approximately 76% of the portfolio’s gross leasable area, with 46% of the tenant roster comprising investment-grade credit.
The portfolio properties are strategically positioned in affluent first-ring suburbs with average household incomes ranging from $140,000 to $228,000 and average home values from $567,000 to $1.2 million within their respective trade areas. Each property benefits from high barriers to entry driven by established residential density in premier locations.
The JLL Capital Markets team was led by Senior Managing Director Chris Drew and Managing Director John Marshall (CA RE license #01223413), along with Directors Wells Waller and Jarrod Howard and Analysts Gabriel Davenport and Preston Bacon.
“These properties represent the convergence of institutional-quality sponsorship and best-in-class grocery-anchored retail in high-barrier-to-entry markets,” Drew said. “The portfolio benefits from exceptional tenant relationships with necessity-based retailers whose locations consistently outperform, combined with the strategic positioning in affluent first-ring suburbs that deliver both operational efficiency and demographic strength.”
JLL’s Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients, including investment sales and advisory, debt advisory, M&A and corporate finance, loan sales, equity & fund placement, net lease, derivative advisory and energy & infrastructure advisory. The group has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
