Cohen & Steers and Acadia Realty Trust Acquire Open-Air Shopping Center in Tampa, FL

Rhea-AI Summary

Cohen & Steers (NYSE: CNS) and Acadia Realty Trust have formed a joint venture to acquire The Walk at Highwoods, a 141,000 square foot open-air shopping center in Tampa, Florida. The fully occupied center features national retailers including HomeGoods, Michael's, and Dunkin'. Located in a high-growth suburban area, the property benefits from Tampa's strong economic growth, favorable tax environment, and expanding technology and financial sectors. The local market shows impressive metrics with 6.4% retail rent growth over the last 12 months and a low 2.3% vacancy rate. Open-air shopping centers nationally are at 95.7% occupancy, their highest level in 16 years.

Positive

• Property is 100% occupied with established national retailers
• Located in high-growth Tampa market with strong economic indicators
• Local market shows 6.4% retail rent growth in last 12 months
• Area has low retail vacancy rate of 2.3%
• Open-air shopping centers achieved highest occupancy in 16 years at 95.7%

Negative

• None.

NEW YORK, Oct. 29, 2024 /PRNewswire/ -- Cohen & Steers (NYSE: CNS) announced today that funds managed by the Private Real Estate Group of Cohen & Steers and the Investment Management business of Acadia Realty Trust (NYSE: AKR – "Acadia"), a publicly traded owner and operator of retail properties in the U.S., have entered into a joint venture to own The Walk at Highwoods, an open-air community shopping center in Tampa, Florida.

The Walk at Highwoods is a 141,000 square foot power center located approximately 20 miles northeast of downtown Tampa in a high-growth suburban area. The center is fully occupied by national and local retailers and tenants including HomeGoods, Michael's, Dunkin', F45 Training, and European Wax Center. The center sits in close proximity to I-75 and additional retail properties, including a Walmart Supercenter, Publix, and Home Depot, that drive significant traffic to the center and altogether create a strong retail hub in the Tampa metropolitan area.

Tampa's favorable tax environment and growing technology and financial sectors have contributed to its strong economic growth over the last decade and have made it an attractive market for corporate relocations and expansions. As a result, Tampa has seen considerable population and employment growth over the last five years, significantly outperforming the average of the top 50 U.S. metros according to CoStar Group. Northeast Tampa has experienced retail rent growth of 6.4% over the last 12 months and a low vacancy rate of 2.3%, indicating the submarket's appeal to retail businesses and consumers alike.

James S. Corl, Head of the Private Real Estate Group at Cohen & Steers, said:
"We are pleased to partner with Acadia, whom we have known since their IPO in 1994 and who share a similar view with us that open-air shopping centers are well-positioned entering a new economic cycle given robust demand and limited new retail construction. The Walk at Highwoods should continue to benefit from Tampa's growth and Acadia's retail real estate operating expertise. We look forward to partnering with Acadia to drive long-term value in this shopping center for our investors."

Open-air shopping centers are at their highest occupancy level of the past 16 years at 95.7% nationally and are the most highly occupied of any major commercial property type in the U.S. according to CoStar Group. Open-air shopping centers were also the best performing private core real estate sector in 2023 according to NCREIF. To learn more about Cohen & Steers' open-air shopping center investment thesis, please read our whitepaper: The Retail Renaissance has arrived in private real estate investing.

About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.

About Acadia Realty Trust. Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth. Acadia owns and operates a high-quality core real estate portfolio ("Core" or "Core Portfolio") of street and open-air retail properties in the nation's most dynamic retail corridors, along with an investment management platform that targets opportunistic and value-add investments through its institutional co-investment vehicles ("Investment Management"). For further information, please visit www.acadiarealty.com.

Website: https://www.cohenandsteers.com
Symbol: NYSE: CNS

 

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SOURCE Cohen & Steers, Inc.

FAQ

What property did Cohen & Steers (CNS) acquire in Tampa?

Cohen & Steers (CNS) and Acadia Realty Trust acquired The Walk at Highwoods, a 141,000 square foot open-air community shopping center in Tampa, Florida.

What is the current occupancy rate of The Walk at Highwoods shopping center?

The Walk at Highwoods is fully occupied (100%) by national and local retailers including HomeGoods, Michael's, Dunkin', F45 Training, and European Wax Center.

What is the retail rent growth rate in Northeast Tampa as of October 2024?

Northeast Tampa has experienced retail rent growth of 6.4% over the last 12 months.

What is the current national occupancy rate for open-air shopping centers?

Open-air shopping centers are at their highest occupancy level of the past 16 years at 95.7% nationally.