Crow Holdings, a leading national real estate investment and development firm, announced today the formation of a joint venture and retail real estate investment platform (“the Platform”) with its investment management business Crow Holdings Capital (“CHC”) and a global institutional investor. 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 formed through a recapitalization of an existing, $1.8-billion, 173-property portfolio owned by two real estate funds managed by CHC and includes a significant equity commitment to pursue new acquisitions to continue to scale the business and establish the joint venture as the dominant small-format, food and service platform in the U.S.
“We are tremendously grateful for this partnership, which serves as a powerful endorsement of CHC’s investment strategy in this attractive segment of the retail real estate market,” said Michael Levy, CEO of Crow Holdings. “In our years of retail experience, we observed the secular trends that would support the resiliency of these small-format retail centers and become a leader in aggregating them, realizing strong leasing activity in the sector, as a result. While e-commerce has been disruptive to other retail segments – and advantageous to industrial development – these types of food and service centers have succeeded where other, more goods-based retail has been negatively affected. We see further opportunity to be the leading institutional player in this market, and we are confident this partnership will provide the resources to achieve even greater future success.”
“This segment of the retail sector presents a compelling opportunity for investors to partner with a manager like CHC who has deep experience investing in the space during both positive and challenging market environments and who understand how a dedicated team of retail specialists can implement a hands-on approach to increase property values,” said Sam Peck, CHC 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. By investing in properties that are well-located with strong tenant demand, we benefit from a reliable income stream and potential capital appreciation by reinvesting into these dynamic retail centers serving local communities across the country.”
The Platform’s portfolio includes properties located across key primary and secondary markets in over 50 cities in over 30 states in the U.S., with a focus on dense and affluent markets located near major suburban population and employment hubs currently benefitting from positive net in-migration, record-low new supply, and positive job growth.
About Crow Holdings
Crow Holdings is a leading national real estate investment and development firm with 75 years of history, $29 billion of assets under management, and an established platform with a vision for continued success. Crow Holdings pursues compelling investment opportunities through a range of strategies, product types, and ventures, consistently seeking to create value for its investors, partners, and communities. Operating from 20 offices in key markets across the U.S., Crow Holdings has extensive industry reach and expertise in multifamily, industrial, and certain specialty sectors. The firm’s ongoing legacy is rooted in its founding principles: partnership, collaboration, and alignment of interests. For more information, please visit www.crowholdings.com.