MINNEAPOLIS, Minnesota – September 22, 2022 – Soor Capital announced that the Soor Essential Retail Venture, its joint venture partnership with CenterSquare Investment Management, has surpassed the $100 million portfolio milestone with the acquisition of The Grove, a 53,489 square foot service retail asset located in Maple Grove, Minneapolis.
Strategic Asset Acquisition
The acquisition of The Grove represents the ninth property in the Essential Retail portfolio, bringing total portfolio size to 303,329 square feet across six metropolitan statistical areas. The property consists of seven buildings constructed in 2006 and features a diverse tenant roster including national, regional, and local tenants such as Chipotle, Subway, State Farm Insurance, and Great Clips.
The portfolio now spans Orlando, Houston, Atlanta, Minneapolis, Sacramento, and Phoenix markets, achieving the joint venture's strategic objective of geographic diversification across high-growth metropolitan areas. The Grove is strategically positioned on Maple Grove Parkway, averaging 30,000 vehicles per day and serving the thriving northwest Minneapolis suburban market.
Exceptional Portfolio Performance
Since launching in July 2021, the Essential Retail Venture has completed nine strategic acquisitions totaling over $105 million in purchase price, representing a 6.84% weighted average capitalization rate and $349 average price per square foot. The portfolio maintains 94.9% occupancy with a 3.9-year weighted average lease term remaining.
"Surpassing the $100 million milestone demonstrates the strength of our partnership with CenterSquare and validates our investment thesis in essential service retail," said a spokesperson for Soor Capital. "The Grove acquisition enhances our geographic diversification while maintaining our focus on high-quality, e-commerce resistant retail assets."
Investment Highlights
The portfolio offers compelling investment characteristics including:
- Diversified tenant mix across food & beverage (37.4%), health & medical (31.5%), commercial services (18.1%), and beauty (7.6%) sectors
- Geographic diversification across six major metropolitan markets with strong demographic fundamentals
- Institutional tenancy with 43.4% national, 20.9% regional, and 35.7% local tenant mix
- Strong demographics with average household income of $95,835 within 3-mile radius
- Proven leasing success with 74 leasing transactions completed and 13.8% average rent increase on rollover
Market Position
The Essential Service Retail subsector continues to demonstrate resilience and growth potential, with the portfolio benefiting from the e-commerce resistant nature of service-oriented tenants. The 88.8% of leases that include rental escalations provide built-in income growth, while the diverse tenant mix across essential service categories ensures stable cash flows.
Properties are strategically located along high-traffic corridors in established suburban markets, serving growing populations with strong household incomes and daily traffic counts averaging 36,517 vehicles per day across the portfolio.
Strategic Partnership
The joint venture combines Soor Capital's investment expertise with CenterSquare Investment Management's institutional platform and market knowledge. Arch Street Capital Advisors, L.L.C. serves as property level advisor and asset manager, bringing extensive experience in U.S. real estate strategies and portfolio management. This partnership has enabled the rapid assembly of a high-quality portfolio while maintaining strict underwriting standards and investment discipline.
For more information about the Essential Retail Venture, visit www.soorcapital.com/serv
About CenterSquare Investment Management
CenterSquare Investment Management is a leading real estate investment management firm with over $12 billion in assets under management globally. Since 1987, the firm has specialized in listed and private real estate investments, serving institutional investors worldwide through comprehensive real estate investment strategies.
About Arch Street Capital Advisors
Arch Street Capital Advisors, L.L.C. is a full service real estate investment and advisory firm formed in 2003. The firm specializes in advising international investors on their U.S. real estate strategies and has advised clients on more than $7.3 billion of transactions across multiple real estate sectors and risk-return profiles.
About Soor Capital
Soor Capital is a private equity real estate firm offering comprehensive investment services across the USA, UK, Europe, and GCC regions. The firm specializes in acquiring institutional-quality real estate assets with superior tenant profiles and prime market locations. Since its establishment in 2018, Soor has transacted over $330 million of private equity real estate investments.
