Cole Real Estate Investments has acquired a portfolio of 32 Albertsons grocery store properties in an all-cash, sale-leaseback transaction for $266 million from Albertsons LLC. The 32 grocery stores, totaling 1.9 million sq. ft., are located in key markets in Arizona, New Mexico, Colorado, Texas and Louisiana. The properties are subject to recently signed 20-year, individual triple-net leases that also include renewal options.
Year-to-date, Phoenix-based Cole has acquired more than $1.8 billion of commercial real estate, including retail, office and industrial properties across the United States. Cole-related entities own or manage 37 million sq. ft. of commercial real estate in 46 states with a combined acquisition cost of more than $6.5 billion.
Kim Kundrak, chief acquisitions officer for Cole, said that the sale-leaseback deal with Albertsons reflects the company’s mission of acquiring income-producing, core retail properties that are leased to nationally recognized, quality tenants under long-term net leases.
“We are thrilled to execute a sale-leaseback transaction of this caliber and acquire such an attractive portfolio of assets,” stated Kundrak in a press release. Cole’s strategy is to provide investors with the opportunity for stable current income and capital appreciation.
Mark Manheimer, director of acquisitions, represented Cole in the transaction. Chris Hoffmann of Eastdil Secured represented the seller.