Phillips Edison acquires its 12th center in Dallas/Fort Worth
One of the nation’s largest owners of grocery-anchored centers has advanced another step on its mission to acquire up to $300 million-worth of properties in 2023.
Phillips Edison & Company has acquired Lake Pointe Market, a 96%-occupied, 40,600-sq.-ft. neighborhood center in Rowlett, Texas, which boasts 30 miles of shoreline on Lake Ray Hubbard east of Dallas. It is PECO’s 12th center in the Dallas/Fort Worth metro.
The center is shadow-anchored by Tom Thumb, the No. 1 grocer by sales in its three-mile trade area and counts H&R Block, Bank of America, Supercuts, and OneMain Financial among its tenants.
“We remain focused on our goal of growing our shopping center portfolio – at the right price – while achieving our acquisition hurdle of a 9% unlevered internal rate of return,” PECO CEO Jeff Edison said. “As previously announced, we plan to acquire $200 to $300 million in net acquisitions this year. We have one of the lowest levered balance sheets in the shopping center space, which gives us the financial capacity to meet that objective.”
Located at the high-traffic intersection of Dalrock Road and Lakeview Parkway, Lake Pointe Market draws more than two million annual visits, according to PECO. The center is situated in a three-mile trade area with more than 52,500 residents with average household income of $119,300.
“We remain well-positioned to continue to gain share through future acquisitions of grocery-anchored shopping centers in densely populated suburban neighborhoods around the U.S.,” said PECO’s SVP of operations David Wik. “Lake Pointe Market presented an excellent opportunity to expand our presence in the highly attractive Dallas/Fort Worth market.”
In pursuing its growth strategy, PECO noted that it has focused on a list of more than 5,800 grocery-anchored neighborhood shopping centers anchored by the No. 1 or No. 2 grocers in their markets.