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Institutional Property Advisors Closes 28-Property Fred Meyer Portfolio Sale

May 06, 2021

Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), as exclusive advisor to Cincinnati-based The Kroger Co. and Portland-based Fred Meyer Stores Inc., announced today the successful sale to Florida-based Benderson Development and leaseback of a 4.5-million-square-foot, 28-property portfolio of absolute net-leased Fred Meyer superstores consisting of 380 acres across Washington, Oregon, Idaho, and Alaska.

"We want to congratulate and acknowledge the hardworking teams at Fred Meyer Stores Inc., The Kroger Co. and Benderson Development on the successful conclusion of this transaction that required long days and nights to complete on time," said Tom J. Lagos, IPA executive director and transaction lead. "Benderson Development stood out on price and terms against a very competitive field of over 20 qualified bidders, and the company’s team worked diligently to complete the transaction in a seamless and timely manner."

"This was a once-in-a-generation opportunity to acquire a portfolio of dominant essential retail stores," added Patrick Toomey, IPA executive director. "Kroger will execute brand new, 25-year absolute net leases for each property with an initial portfolio-wide base rent totaling $25 million per year." Lagos, Toomey, and IPA’s Jose Carrazana, Jessica Baram and Ryan Garcia represented Fred Meyer Stores Inc. "The property provides new ownership with a stable income stream secured by Kroger’s corporate guarantee and enhanced by contractual rent increases of 5% every five years," noted Carrazana.

 

Read the Full Article at yahoo!finance

 

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