PSP Investments and Nuveen Real Estate have launched a joint venture with an initial $790 million investment focused on acquiring open-air shopping centers across the United States.
The strategy centers on shopping centers anchored by dominant grocers, necessity-based retailers, and essential services. The partners are targeting U.S. metropolitan areas with strong population growth, rising household incomes, and high barriers to new development.
To date, the joint venture has acquired 19 properties totaling approximately 3 million square feet across Virginia, Arizona, Florida, Minnesota, Texas, California, Colorado, and Washington.
Among the individual acquisitions is The Shoppes of Lorton Valley, a 110,000-square-foot grocery-anchored neighborhood center in Lorton, Virginia. The property is anchored by Giant and serves the broader Washington, D.C. market.
The venture has also acquired Las Tiendas Village in Chandler, Arizona, a 188,000-square-foot community shopping center in the Phoenix-Mesa-Chandler metropolitan area. The property is anchored by Sprouts and includes additional national and regional retailers.
PSP Investments and Nuveen have also completed two larger portfolio transactions as part of the strategy. One portfolio includes six open-air shopping centers totaling approximately 801,000 square feet across the Fort Lauderdale, San Diego, Orange County, Dallas-Fort Worth, Minneapolis, and Los Angeles markets.
A second portfolio consists of 11 properties totaling approximately 1.9 million square feet across California, Colorado, and Washington. The assets are generally positioned near major corridors or high-traffic intersections intended to provide convenient access for daily-needs shoppers.
The investment approach reflects a focus on segments of retail real estate that the partners believe can generate relatively durable demand across economic cycles. Grocery-anchored and necessity-based shopping centers have remained a key area of institutional interest because consumers continue to visit them for food, household products, services, and other recurring needs.
PSP Investments manages approximately $320.6 billion in net assets, while Nuveen Real Estate manages approximately $135 billion in real estate assets globally.
The joint venture combines PSP Investments’ long-term institutional capital with Nuveen’s property sourcing, operating, and asset management capabilities as the partners continue to build their U.S. open-air retail portfolio.
KEY QUOTES:
“We have been reshaping our U.S. retail exposure around a much tighter definition of the sector: open-air centers anchored by grocers and daily-needs tenants, which aims to deliver a steady, inflation-linked income for our portfolio. Nuveen brings the sourcing reach and operating depth this kind of portfolio demands, and what we own today is exactly the retail exposure our strategy calls for.”
Julien Roy-Décary, Managing Director, Real Estate Investments, Americas At PSP Investments
“Necessity-based retail has demonstrated remarkable resilience through various cycles, underpinned by consistent consumer demand for essential goods and services. Coupled with PSP Investments’ long-term capital, this venture is designed to deliver both durable income and long-term value creation. We’re confident this combination of scale, relationships, and local execution positions us strongly in one of the most stable and defensive segments of retail real estate.”
Brian Wallick, Portfolio Manager, Retail At Nuveen Real Estate
