Hyperion Realty Capital and GCM Grosvenor have formed a strategic partnership to scale a grocery-anchored retail investment platform targeting up to approximately $1 billion in aggregate property value across the Western U.S.
GCM Grosvenor, on behalf of its investment funds, plans to invest up to $100 million into a new closed-end vehicle called Hyperion Grocery Retail Partners III.
The fund is targeting $200 million in total equity.
GCM Grosvenor will also join Hyperion’s Board of Directors as part of the partnership.
The fund will primarily pursue value-add grocery-anchored shopping centers in the Western U.S., particularly middle-market assets that have historically received less institutional capital than larger retail properties.
Target properties will include neighborhood, strip and community shopping centers.
Hyperion’s strategy focuses on centers anchored by national and regional grocery companies and other retailers serving daily consumer needs.
Potential value-creation strategies include leasing vacant space, replacing tenants, adjusting rents toward market levels and monetizing outparcels.
Hyperion was founded in 2019 by Jon Mendis through the lift-out of an experienced grocery retail investment team.
Its principals have collectively completed more than $4 billion of grocery-anchored retail transactions and average more than 15 years of sector experience.
Hyperion currently owns and operates 10 shopping centers across major West Coast markets, most of which were sourced through off-market or relationship-based transactions.
GCM Grosvenor manages approximately $97 billion across private equity, infrastructure, real estate, credit and absolute return strategies.
KEY QUOTES:
“We are excited to partner with Jon and the Hyperion team to help build a leading grocery-anchored retail platform. Hyperion’s deep operating experience and industry relationships make them an ideal partner in the grocery-anchored retail space.”
Peter Braffman, Managing Director at GCM Grosvenor
“GCM Grosvenor is an ideal strategic partner for this next chapter of our growth. Their industry leadership and investment excellence strengthen our team and our platform as we continue to build a leading, vertically integrated investment platform focused on necessity-based retail. We look forward to a long and successful partnership.”
Jon Mendis, CEO and Founder of Hyperion Realty Capital
