Dealmaker: JLL Secures $158M for 11-Property Retail Portfolio

JLL Capital Markets, Chicago, closed the $295 million sale of and arranged $157.9 million in financing for a portfolio of 11 New England single-tenant retail buildings.

The assets are located throughout Connecticut, Massachusetts and Rhode Island. They are net leased to Stop & Shop, the No. 1 grocer by market share in Connecticut, Massachusetts and Rhode Island.

JLL marketed the portfolio on behalf of seller Winstanley Enterprises and Surrey Equities. The Inland Real Estate Group of Cos. acquired the assets. Additionally, JLL secured two separate 10-year fixed-rate loans with a life company and with a commercial mortgage-backed securities lender for the new owner.

Property photo courtesy of JLL

The 748,141-square-foot portfolio includes:

•             19 Howley St., Peabody, Mass.

•             905 Massachusetts Ave., Arlington, Mass.

•             35 Bedford St, Lexington, Mass.

•             55 Long Pond Dr., South Yarmouth, Mass.

•             469 Pleasant St., Attleboro, Mass.

•             595 Smithfield Rd., North Smithfield, R.I.

•             446 Putnam Turnpike, Greenville, R.I.

•             333 W. River St., Providence, R.I.

•             1391 Main St., Willimantic, Conn.

•             195 West St., Cromwell, Conn.

•             15 Franklin St., Seymour, Conn.

The recently released JLL U.S. Grocery Tracker report found grocery-anchored retail centers continue to be investors’ preferred retail property type. It said single-tenant grocery assets such as those represented in this portfolio will be among the most sought-after asset classes during the recovery. These properties should see “significant” cap rate compression over the next 12 to 18 months, the report said.

The JLL Capital Markets Investment Sales Advisory team representing the seller was led by Managing Director Nat Heald and Senior Managing Director Jose Cruz with Senior Managing Director Chris Angelone and support from Managing Director Matthew Sherry.

“Since the value of these types of assets appreciated throughout the pandemic, we anticipate investors will continue to aggressively pursue these defensive positions within the retail sector and that demand will far outstrip supply for the foreseeable future,” Heald said.

The JLL Capital Markets Debt Placement team representing the new owner included Senior Managing Directors Lauren O’Neil and Elliott Throne.

“Entering 2021, lenders were hungry to put out capital, particularly in lower-risk assets, like credit, long-term, net-leased retail,” O’Neil said.