Investment Supports Rapid Growth of Retail Real Estate Portfolio
Brixton Capital, a privately held real estate investment firm, secured a $250 million programmatic joint venture with an undisclosed global alternative investment manager. The strategic partnership will help Brixton grow its portfolio of shopping centers throughout the Western U.S.
The $250 million investment translates into roughly $700 million of acquisition capacity. Property targets include grocery anchored shopping centers, power centers and limited unanchored centers and strip malls.
Brixton executed its first deal within the joint venture with a $67.5 million acquisition of Washington Square in Petaluma, California. The purchase price reflects a value of approximately 60% of replacement cost, and Brixton has planned multiple strategies to enhance value.
“We are proud to offer our joint venture partner more than 40 years of our experience in West Coast retail and a best-in-class management team,” said Brixton Capital Chairman Marc Brutten. “Our established reputation for nurturing tenant relationships and successful track record executing value-add retail investments also underpin our success and helped us secure this investment.”
Other market dynamics influencing Brixton’s decision include an increase of retailers using their stores as last-mile distribution centers and the rise of omni-channels, which are optimized with both an online and brick-and-mortar experience.
“Establishing a joint venture allows us to scale our business quickly with one investment partner with a similar investment premise for increasing exposure to the retail asset class,” said Brixton Capital President and Chief Investment Officer Rob Taylor. “We believe it’s a favorable time to buy retail properties in the Western U.S. due to limited development over the last 15 years and an all-time nationwide vacancy rate of 4%.”
About Brixton Capital
Brixton Capital is a preeminent private real estate investment firm that seeks to generate outstanding, risk-adjusted returns by unlocking embedded value in commercial real estate transactions spanning multifamily and retail properties. Headquartered in San Diego County’s Solana Beach, California, Brixton is led by a team of seasoned commercial real estate experts with an average of more than 25 years of experience. Brixton currently owns and operates a portfolio of approximately $2.0 billion AUM of multifamily, retail and land investments across the United States. For more information, visit www.brixtoncapital.com.
