HFF Arranges a $414.5M Joint Venture for 20 High-Quality Retail Centers

November 12, 2018

NEW YORK--(BUSINESS WIRE)--Nov 12, 2018--Holliday Fenoglio Fowler, L.P. (HFF) announces today that it acted as exclusive financial advisor to Phillips Edison & Company, Inc. (“PECO”) and its affiliate in facilitating the formation of Grocery Retail Partners I (“GRP I”) and Grocery Retail Partners II (“GRP II”), two joint venture partnerships totaling $414.5 million in asset value and encompassing 20 high-quality, grocery-anchored shopping centers in what is the largest shopping center recapitalization of the year.

Working on behalf of PECO and Phillips Edison Grocery Center REIT III, Inc. (“PECO III”), which is a REIT sponsored and managed by PECO, the HFF team arranged GRP I and GRP II JVs with Northwestern Mutual as the partner.

Under the terms of GRP I, Northwestern Mutual acquired an 85-percent interest in the 17-center portfolio, which is currently valued at $368 million. PECO maintained 15-percent ownership in the portfolio while providing asset and property management services for the joint venture. The proceeds from GRP I will be deployed by PECO to delever its balance sheet, fund redevelopment projects and further expand its portfolio of grocery-anchored centers.

Under the terms of GRP II, Northwestern Mutual invested in three shopping centers currently owned by PECO III. Northwestern Mutual acquired a 90-percent interest in the portfolio, which is valued at approximately $46.5 million, and PECO III maintained a 10-percent ownership in the portfolio. PECO, as PECO III’s sponsor and manager, will continue to provide asset and property management services for the properties. PECO III intends to use the proceeds to further expand its growing portfolio of grocery-anchored centers.

The HFF equity placement team representing PECO and PECO III included senior managing directors Steve Hentschel and Danny Finkle and senior director Sheheryar Hafeez along with senior managing directors Michael Joseph and Doug Bond.

“The formation of the JVs between Northwestern Mutual, one of the country’s largest and most experienced commercial real estate investors, and PECO reaffirms the high-quality nature of its grocery-anchored shopping center portfolio and validates the strength of PECO’s best-in-class platform,” Hentschel said.

About Phillips Edison & Company, Inc.

Phillips Edison & Company, Inc., an internally-managed REIT, is one of the nation’s largest owners and operators of grocery-anchored shopping centers. Its diversified portfolio of well-occupied neighborhood shopping centers has a mix of national and regional retailers selling necessity-based goods and services, in strong demographic markets throughout the United States. As of September 30, 2018, the Company manages 339 shopping centers – 233 of which it owns directly – comprising approximately 25.9 million square feet located in 32 states. The Company’s proven, vertically-integrated operating platform allows it to effectively and efficiently acquire, lease and manage its properties, resulting in a history of strong operating results and great shopping experiences. For more information, please visit www.phillipsedison.com.

About Phillips Edison Grocery Center REIT III, Inc.

Phillips Edison Grocery Center REIT III, Inc. is a public non-traded real estate investment trust that seeks to acquire and manage well-occupied grocery-anchored neighborhood shopping centers having a mix of national and regional retailers selling necessity-based goods and services, in strong demographic markets throughout the United States. The REIT is co-sponsored by Phillips Edison & Company, Inc. and Griffin Capital Company, LLC.

About Northwestern Mutual

Northwestern Mutual has been helping families and businesses achieve financial security for more than 160 years. Through a distinctive, whole-picture planning approach, we empower our clients to make the most of every single day and plan for important moments in their future. We combine the expertise of our financial professionals with a personalized digital experience to help our clients navigate their financial lives every day. With $265.0 billion in assets, $28.1 billion in revenues, and $1.8 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to 4.5 million people who rely on us for life, disability income and long-term care insurance, annuities, brokerage and advisory services, trust services and discretionary portfolio management solutions. The company manages more than $125 billion of client assets through its wealth management and investment services. Northwestern Mutual ranks 104 on the 2018 FORTUNE 500 and is recognized by FORTUNE® as one of the “World’s Most Admired” life insurance companies in 2018. For more information, visit https://www.northwesternmutual.com.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, Wisconsin, (life and disability insurance, annuities and life insurance with long-term care benefits) and its subsidiaries. Northwestern Mutual and its subsidiaries offer a comprehensive approach to financial security solutions including: life insurance, long-term care insurance, disability income insurance, annuities, life insurance with long-term care benefits, investment products and advisory products and services. Subsidiaries include Northwestern Mutual Investment Services, LLC (NMIS) (securities), broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company® (NMWMC) (fiduciary and fee-based financial planning services), federal savings bank; and Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance).

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

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STEVE HENTSCHEL, (212) 336-5481

HFF Senior Managing Director



DANIEL FINKLE, (305) 448-1333

HFF Senior Managing Director



DOUG BOND, (310) 407-2100

HFF Senior Managing Director



MICHAEL JOSEPH, (310) 407-2100

HFF Senior Managing Director



SHEHERYAR HAFEEZ, (212) 336-5485

HFF Senior Director



KIMBERLY STEELE, (713) 852-3420

HFF Digital Content/Public Relations Specialist





Copyright Business Wire 2018.

PUB: 11/12/2018 04:21 PM/DISC: 11/12/2018 04:21 PM


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