CenterSquare Investment Management and Arch Street Capital Advisors, acting on behalf of a capital partner, has formed a joint venture targeting investments in high-end service properties in the sunbelt region of the United States. Supporting the strategy is an acquisition financing facility from Barclays, providing the JV the ability to acquire approximately $150 million of properties. Since the formation in July, the JV has closed three separate transactions, acquiring four properties located in Orlando, Houston and Atlanta. The joint venture is actively seeking service property investments opportunities in the $7 – 20 million price range.
CenterSquare senior vice president, Robert Holuba, commented, “Changing consumer patterns have created meaningful tailwinds behind the growth of the service sector, which is translating into strong fundamentals for essential service retail properties,” said Holuba. “While much of the retail sector continues to be painted with the same negative brush, we recognize there is a unique window of opportunity to acquire high performing service property assets at favorable pricing. For these reasons, we continue to view these investment opportunities as some of the most attractive risk-adjusted returns in the market today.”
Arch’s senior vice president, Gautam Mashettiwar, said, “We are excited to partner with CenterSquare on this sector-focused strategy. The Service Properties sector remains highly fragmented and provides a compelling opportunity to create a diversified portfolio of attractive yield generating properties.”