Acadia Strategic Opportunity Fund LP, a division of Acadia Realty Trust, has acquired a 1 million sq. ft. portfolio of 25 Kroger and Safeway supermarkets. The deal was a joint venture with locally based real estate developer AmCap Inc.
The acquisition pushes the Long Island, N.Y.-based REIT $47 million closer to its goal of acquiring $300 million of real estate assets for the fund. So far, it has purchased or contracted a total of $161 million in assets.
The majority of the Kroger and Safeway supermarkets — the second and fourth largest grocers in the nation, respectively — are freestanding and all are triple-net leases. The firm anticipates a cash yield of more than 15% on the properties.
Separate from the Kroger/Safeway portfolio acquisition, Acadia also has announced that it will purchase the 1 million sq. ft. Brandywine Town Center retail complex in Wilmington, Del. The transaction is expected to close within 30 days.