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

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.