SJC Ventures has established a joint venture that will target grocery-anchor developments near luxury multifamily projects on the East Coast. Cushman & Wakefield, which arranged the partnership between SJC and an unnamed insurance firm, forecasts that the capitalization will be almost $1 billion.
The JV will start with $300 million equity tranche, with three seed projects across 197,000 square feet in retail and a multifamily building already closed on. This includes a 121,602-square-foot retail development called Shops at Broadcasting District in Wyomissing, Pennsylvania, 76,000-square-foot shopping center Wesley Chapel Station in Wesley Chapel, Florida; and 341-unit luxury multifamily project, Residences at Broadcasting District in Wyomissing.
Both Wesley Chapel Station and Shops at Broadcasting are anchored by a Whole Foods store. Truist provided a $44 million construction loan for Shops at Broadcasting (arranged by Cushman & Wakefield) and Seacoast Bank issued $30 million for Wesley Chapel Station. John Alascio, who serves on Cushman & Wakefield's equity, debt & structured finance team, said the brokerage is involved with "pending additional developments in Florida, Georgia, Maryland and Virginia," for the JV.
“SJC has a proven track record, having developed numerous premier grocery-anchored projects, backed by a +20-year relationship with a dominant organic grocer anchor," Mark Gilbert, another on Cushman & Wakefield's equity, debt & structured finance team, said in a statement.
"With this new complementary partner, the venture is uniquely positioned to deliver exceptional value and capitalize on market trends that prioritize community-centric retail and residential integration.”
According to SJC, it has completed 4.5 million square feet of space for retail projects.
As many consumers find themselves financially constrained in the current environment and store closures persist — off-price retail has found success, as Brandon Svec, national director of U.S. retail analytics for CoStar Group, recently noted to GlobeSt. Particularly, the thriving brands include Dollar Tree, Dollar General, T.J.Maxx, Burlington and Walmart.
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