Crow Holdings, the Dallas-based national real estate investment and development firm, has formed a joint venture and retail real estate investment platform with its investment management business Crow Holdings Capital and a global institutional investor.
Crow Holdings CEO Michael Levy said the partnership “serves as a powerful endorsement of CHC’s investment strategy in this attractive segment of the retail real estate market.”
“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,” Levy said in a statement.
“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,” he added. “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.”
Expanding in ‘a highly fragmented market’
The company said the partnership allows it 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 via a recapitalization of an existing, $1.8-billion, 173-property portfolio owned by two real estate funds managed by CHC. It includes a significant equity commitment to pursue new acquisitions to continue to scale the business with the goal of establishing the joint venture as the dominant small-format, food and service platform in the United States, Crow Holdings said.
Aiming to unlock growth potential
“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,” Crow Holdings Capital Managing Director Sam Peck said in a statement. “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.”
Peck said that by investing in well-located properties that have strong tenant demand, the company benefits 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 situated across key primary and secondary markets in more than 50 cities in over 30 U.S. states, 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.
Crow Holdings has $29 billion of assets under management and an established platform with a vision for continued success, the company said.
The goal is to pursue compelling investment opportunities through a range of strategies, product types, and ventures, consistently seeking to create value for its investors, partners, and communities.
The company operates from 20 offices in key markets across the nation, with extensive industry reach and expertise in multifamily, industrial, and certain specialty sectors.
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