Pricing Gap Narrows for Retail Properties


On the heels of Starwood Capital Group’s agreement to acquire seven U.S. shopping malls for $1 billion from The Westfield Group and private equity group KKR Financial Holdings’ starting to acquire retail real estate, REITs across the country are gearing up for a surge in new retail properties to hit the market in the second half of this year. In some of those cases, the REITs themselves will be the ones putting the properties up for sale.

Starwood Capital is buying the majority interest in seven shopping malls with a combined 6.61 million square feet. Many of the centers are in mid- and small-sized markets, including such places as Lincoln, NE; Fairfield, CA; and Cleveland, OH.

Kohlberg Kravis Roberts & Co. LP, in partnership with YTC Pacific, acquired Yorktown Center regional mall for $196 million — marking the global investment firm’s first retail real estate investment in the U.S.


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