Grocery-Anchored Portfolio

Essex arranged an $87.5M loan to refinance a five-property retail portfolio totaling 689,599 SF across the greater Denver Metro. Each of the neighborhood centers is anchored by King Soopers, a subsidiary of Kroger (NYSE: KR, S&P: BBB). Essex worked on behalf of AmCap, Incorporated, which has owned the properties since 1987.

The grocery-anchored portfolio was 98% leased at the time of financing, with King Soopers accounting for more than half of the net rentable area. King Soopers is Colorado’s dominant grocer, significantly outperforming other operators in terms of volume and market share. Other tenants in the Portfolio include a mix of national and local retailers focused on daily needs, service uses, and restaurants. Each of the properties are situated in densely populated neighborhoods with proximity to rooftops and high daily traffic counts. AmCap has owned and operated more than a dozen properties in the Denver market since its initial acquisition more than 35 years ago.

“Despite the challenging financing environment, the ultimate lender was attracted to this portfolio due the combination of the centers’ superior locations, grocery-anchored nature, proven sales and strong sponsorship” according to Paul Donahue, Principal of Essex.

Essex secured the fixed-rate, non-recourse loan with an institutional investment manager that was funding on behalf of a life insurance company separate account.