Slate Grocery REIT buys $425m portfolio, forms JV

Slate Grocery REIT has agreed to acquire 14 properties comprising 2.5 million square feet.

The retail portfolio is valued at $425 million, which represents a 6.9 percent capitalization rate or $174 per square foot. The portfolio is located across seven states with over two-thirds of the portfolio value being allocated to the Southeastern United States.

The REIT also announced that it has entered into agreements with Slate North American Essential Real Estate Income Fund L.P. (the NA Essential Fund), a vehicle managed by Slate Asset Management, which will result in the formation of a strategic joint venture. The NA Essential Fund has agreed to make an initial investment of $180 million into the REIT’s assets (the investment) through the purchase of partnership interests in two REIT subsidiaries (the JV partnerships). Proceeds from the Investment will be used immediately to fund the acquisition.

The portfolio acquisition consists of assets in the growing Sun Bel