Crow Holdings (a national leader in real estate development and investment) announced today that it has formed a joint venture with Crow Holdings Capital, its investment management company, and a major global investor to form a retail real estate platform. This partnership enables CHC to expand its retail investment strategy of acquiring small-format, convenience-oriented, open-air, food and service shopping centers and to continue capitalizing on the opportunity to aggregate an institutional-quality portfolio in a highly fragmented market.
The Platform was created through the recapitalization of a $1.8 billion portfolio of 173 properties owned by two CHC-managed real estate funds. It also includes a significant commitment to equity to pursue new acquisitions in order to scale up the business, and to establish the joint venture to be the dominant platform for small-format food and services in the U.S.
Michael Levy is CEO of Crow Holdings. He said, “We are extremely grateful for this partnership. It serves as a powerful affirmation of CHC’s strategy of investing in this attractive retail real estate segment.” In our retail experience we have observed secular trends which would support the resilience of these small-format retailers centers. We became a leader by aggregating them and realizing strong leasing activities in the sector as a consequence. These food and service centres have thrived where other goods-based retailers have failed. We believe that we can be the dominant institution in this market and are confident that this partnership will give us the resources needed to achieve greater success.
Sam Peck said, “This segment in the retail sector offers investors a compelling opportunity to partner with CHC. CHC has a deep understanding of how to implement a team of retail experts who can increase property value through a hands-on method,” explained CHC’s Managing Director. “We have an incredible opportunity to continue to aggregate high-quality but non-institutional-scale assets and unlock their growth potential by applying an institutional asset management framework. We benefit from a steady income stream by investing in retail centers that are located in areas with high tenant demand.
Platform’s portfolio includes over 50 properties in key secondary and primary markets across over 30 U.S. states. The focus is on dense, affluent suburbs near employment and population hubs that are currently benefiting from net positive in-migration and record-low supply.