CenterSquare forms JV with Arch targeting U.S. service properties

CenterSquare Investment Management and Arch Street Capital Advisors have formed a joint venture targeting investments in high-end service properties in the U.S. Sun Belt region.

Service properties, a niche sector of retail, consists of institutional-quality, multi-tenant shopping centers leased to businesses whose customers must visit the store to consume the service. Deemed “essential” during the COVID-19 pandemic, many of these businesses remained open in 2020 and include national and regional brands that offer quick service dining, beauty, fitness, health, and medical and professional services. The JV is targeting unanchored properties that are located on well-trafficked, highly visible street corners in growing cities throughout the Sun Belt region.

CenterSquare has been investing in this sector since 2015, assembling a national portfolio that has experienced strong operating performance vis-a-vis other asset classes both before and during the pandemic.