Blackstone has announced its acquisition of Retail Opportunity Investments Corp. (ROIC) in a deal valued at approximately $4 billion. The all-cash transaction, set at $17.50 per share, marks a substantial premium of 34% over ROIC's closing share price on July 29, 2024, just before rumors of a potential sale began circulating.
ROIC's portfolio includes 93 high-quality, grocery-anchored retail properties, spanning 10.5 million square feet across prime West Coast locations such as Los Angeles, Seattle, San Francisco, and Portland. This acquisition aligns with Blackstone's strategy to invest in necessity-based retail centers in densely populated areas.
"The sector is experiencing accelerating fundamentals, benefiting from nearly a decade of virtually no new construction, while demand for brick-and-mortar grocery stores, restaurants, fitness and other lifestyle retailers remains healthy," said Jacob Werner, Co-Head of Americas Acquisitions at Blackstone Real Estate.
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The deal has received approval from ROIC's Board of Directors and is expected to close in the first quarter of 2025, subject to customary closing conditions and shareholder approval. J.P. Morgan served as ROIC's financial advisor, with Clifford Chance US LLP providing legal counsel. Blackstone's team of advisors included BofA Securities, Morgan Stanley & Co. LLC, Newmark, and Eastdil Secured, with Simpson Thacher & Bartlett LLP offering legal guidance.
This acquisition further solidifies Blackstone's position in the real estate market, adding a strong collection of high-quality assets in desirable West Coast markets to its portfolio. The transaction also reflects the ongoing trend of private equity firms targeting REITs in the current market environment.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
