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Retail investment activity has returned as investors have unlocked the key to brick-and-mortar in the age of the Internet. As a result, grocery-anchored centers have become particularly popular among investors, especially in coastal markets along the West Coast. Now, discount grocers, are landing on investors’ radar. While institutional investors haven’t become active players in the discount grocer niche, private capital has—and it shows. Hanley Investment Group has recently sold several ALDI-anchored retail centers in Southern California, including the 84.368-square-foot La Verne Courtyard and the BevMo-co-anchored Friendly Hills Center.

“Discount grocers such as ALDI, Grocery Outlet, and Smart & Final are still an acquired taste for institutional capital, but the private investment market has fully embraced them,” Bill Asher, EVP at Hanley Investment Group, tells GlobeSt.com. “After opening their first batch of stores in March 2016 in Southern California over the last three years, ALDI has become a widely accepted grocery store in the region, mostly based on the value a customer gets for the money spent.”

Kelsi Maree Borland

Kelsi Borland is a freelance writer and editor living whose work has appeared in such publications as Travel + Leisure, Angeleno and Riviera Orange County.

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