Oxford Properties, a global real estate investor owned by a Canadian pension fund, is expanding its U.S. real estate holdings with the acquisition of more than 1 million square feet of open-air retail space in a rapidly growing Sun Belt market through a joint venture with Pine Tree of Chicago.
Oxford, a real estate arm of the Ontario Municipal Employees Retirement System based in Toronto, said it purchased Wolf Ranch Town Center, a 633,000-square-foot open-air mall in Georgetown, Texas, and Lakeline Plaza, a 386,000-square-foot property in Cedar, Texas, for an undisclosed price.
The Oxford-Pine Tree partnership acquired the pair of retail properties from Washington Prime Group, according to CoStar data. The deal expands and diversifies Toronto-based Oxford's U.S. property portfolio, which includes residential and industrial properties.
“Wolf Ranch and Lakeline Plaza house a diverse mix of resilient and complementary retailers and embody our ethos of investing in high-quality, well-located assets that deliver both strong cash flow and long-term value,” said Ankit Bhatt, head of U.S. investments at Oxford Properties, in a statement announcing the acquisition. “By acquiring these retail centers, Oxford creates a foundation for growth in a new sector, allowing us to leverage our global retail expertise to optimize tenant mix and drive performance.”
Oxford said the open-air retail market in the U.S. is undersupplied and its investment offers "significant downside protection amid economic headwinds.” The company, whose portfolio includes a major retail component at the landmark Hudson Yards mixed-use development in Manhattan, indicated it intends to further expand its open-air retail portfolio in the U.S.
The Austin retail investment sales market is facing a challenging landscape and declining property values, despite limited available space, according to a report from CoStar Market Analytics. Construction activity is also declining, despite strong retailer demand.
Looking ahead, "property prices continue to face downward pressure due to the ongoing valuation gap between buyers and sellers, contributing to Austin's comparatively low sales volumes among the 50 largest U.S. retail markets," CoStar said.
Greater Austin ranks among the fastest-growing regions in the country, according to the latest figures from the U.S. Census. Austin added 50,105 residents between 2022 and 2023.
Wolf Ranch and Lakeline Plaza are anchored by high-performing grocery tenants. The fully-leased shopping centers’ tenants include Target, TJ Maxx, Best Buy and Ulta Beauty.
Oxford’s global retail portfolio spans nearly 10 million square feet and is valued at an estimated $8.8 billion in assets under management. The company said its properties serve over 100 million shoppers around the globe every year.
Pine Tree will operate the shopping properties for the joint venture, the partnership said. The Chicago-based retail investor, operator and service provider has $3 billion in assets under management across the U.S.
For the record
The two-property transaction was brokered by Kyle Minter and Conor Lalor of Newmark.