DLC acquires Sewell open-air retail center plus three others out of state in $100M deal 

DLC, a New York-based owner, operator, and manager of open-air retail, along with funds managed by DRA Advisors, has acquired four major open-air shopping centers with an institutional investment partner, it was announced today.

The deal includes marquee assets in New Jersey, Colorado, Arizona and Ohio.

Cross Keys Place in Sewell totals 147,694 square feet and is anchored by Michaels, Old Navy, Petco and the most-visited Edge Fitness in the Garden State.

The 34,674-square-foot Shops at Prescott Gateway in Arizona captures two trade areas outside Phoenix and boasts a diverse mix of national tenants, including Trader Joe’s, SAS Shoes and Great Clips.

The 380,479-square-foot Cornerstar shopping center in Aurora, Colorado, is anchored by Target, Marshalls, HomeGoods, 24 Hour Fitness, Nike and Ulta. DLC has executed a lease and will be adding specialty grocery to the tenant mix immediately after acquisition.

The fourth property, Powell Center near Columbus, Ohio, comprises 201,970 square feet with national tenants including Marshalls, HomeGoods, Michaels and Staples, and is located close to the Ohio State University and the regional headquarters of JPMorgan Chase. Powell Center is being acquired 53% occupied, and DLC has plans for an immediate redevelopment featuring new national tenants.

“While overall market transaction volume has declined in 2023, DLC has made numerous acquisitions through our proven off-market sourcing and our abundant access to both debt and equity capital,” Adam Ifshin, founder and CEO of DLC, said. “We saw a tremendous opportunity in this deal to expand our national presence through the acquisition of great assets — and we’ve already mitigated much of the investment’s operational risk by preleasing many of the box vacancies as well as numerous inline spaces.”

“DLC has structured and completed an acquisition that will deliver very strong, above-market returns,” Jonathan Wigser, executive vice president and chief investment officer at DLC, said. “Even in today’s challenging lending environment, DLC secured accretive loans on each of the four properties.”

“DLC was able to source and close this portfolio transaction on an off-market basis given its relationship and track record with the seller and lenders. We continue to seek other acquisition opportunities in the current environment,” Aaron Wu, vice president of acquisitions, said.

“We are excited to continue growing our national joint venture platform with DLC through this attractive, off-market retail portfolio acquisition,” Brett Gottlieb, managing director of DRA Advisors, said.