Cohen & Steers Expands Retail Footprint with Deer Valley Towne Center Acquisition in Phoenix
- Cohen & Steers Income Opportunities REIT acquired Deer Valley Towne Center, expanding its portfolio to six shopping centers.
- The center, over 94% leased, is strategically located near residential units and major transportation corridors.
- CNSREIT's focus on necessity-driven shopping aligns with market trends, aiming for sustainable returns in high-growth areas.
Cohen & Steers Expands Retail Portfolio with Strategic Acquisition in Phoenix
Cohen & Steers Income Opportunities REIT, Inc. ("CNSREIT") announces its latest acquisition of the Deer Valley Towne Center, a 159,000 square foot open-air shopping destination located in the rapidly growing Deer Valley submarket, just 17 miles north of Phoenix, Arizona. This acquisition, executed through a joint venture with Sterling Organization, represents CNSREIT's fourth collaboration with Sterling and brings the total number of open-air shopping centers in its portfolio to six. The Deer Valley Towne Center is currently over 94% leased, reinforcing CNSREIT's commitment to investing in high-quality, income-generating properties in prime locations.
The strategic positioning of the Deer Valley Towne Center enhances its appeal, as it is located near 800 apartment units and 200 hospital beds, making it an attractive destination for local residents. The center also benefits from its proximity to critical transportation corridors, including the major intersection of I-17 and Loop 101. This accessibility, combined with a robust demographic profile—featuring a median household income of $72,000 within a 3-mile radius and a population of 109,000—positions CNSREIT to capitalize on the area's projected population growth of 1.3% over the next five years. CEO James S. Corl expresses optimism about the property's potential to meet the increasing demand for retail space in the region.
CNSREIT's strategic focus on necessity-driven shopping centers aligns with the current market trends. Open-air shopping centers are experiencing a notable resurgence, with occupancy rates reaching 95.7%, the highest in 16 years, according to CoStar Group. This trend highlights the resilience of retail spaces that cater to essential consumer needs. By leveraging the favorable tax environment of Arizona, which boasts the fourth lowest tax rate in the U.S., CNSREIT aims to enhance its portfolio and deliver sustainable returns to its investors while addressing the retail demands of local communities.
In addition to this acquisition, CNSREIT continues to prioritize partnerships that enhance its market presence and operational efficiency. The collaboration with Sterling Organization has proven fruitful, enabling the REIT to tap into lucrative investment opportunities in high-growth markets. As CNSREIT solidifies its position in the retail landscape, its strategy remains focused on acquiring properties that not only generate income but also cater to the evolving needs of consumers.
Cohen & Steers Capital Management, Inc., the external manager for CNSREIT, specializes in real assets and alternative income investments, underscoring the firm’s commitment to expanding its influence in the real estate sector. The acquisition of Deer Valley Towne Center is a testament to CNSREIT's proactive approach in a competitive market, ensuring it remains well-positioned for future growth and success.