Oxford Properties Group has entered the U.S. open-air retail investment sector with the creation of a joint venture with Pine Tree and the acquisition of two properties in Austin, Tex. for a reported US$250 million.

In addition to being Oxford’s first U.S. retail acquisition, the venture is also its first with Pine Tree, a vertically integrated Chicago-based retail real estate company. Founded in 1995, Pine Tree owns or operates over US$3 billion of assets and 18 million square feet of open-air retail across the United States.

The properties involved are Wolf Ranch Town Center and Lakeline Plaza, two “strong-performing, grocery-anchored” shopping centres which combine to comprise approximately a million square feet of space. They were previously owned by Washington Prime Group.

They are anchored by several national U.S. retailers including Target, TJ Maxx, Best Buy, Ulta Beauty and more. 

In the announcement this week, Oxford cites its conviction for high-quality, well-located assets with positive long-term supply and demand fundamentals. Wolf Ranch and Lakeline Plaza are both 99-per-cent leased and benefit from high visitor traffic driven by their positions in the Austin market.

“This acquisition is both a unique opportunity and an exciting milestone for Oxford as we enter the U.S. open-air retail sector alongside a proven best-in-class operator in Pine Tree,” Ankit Bhatt, Oxford’s head of U.S. investments, said in the announcement. “Wolf Ranch and Lakeline Plaza house a diverse mix of resilient and complimentary retailers and embody our ethos of investing in high-quality, well-located assets that deliver both strong cash flow and long-term value.”

The two shopping centre acquisitions

Located at one of the Austin region’s busiest intersections, Wolf Ranch is a 633,000-square-foot centre in Georgetown that attracts over seven million annual visitors. Lakeline Plaza, southwest of Wolf Ranch, spans 386,000 square feet at a core retail intersection in Cedar Park and features a strong mix of national brands and necessity-based retailers.

The city of Austin has been experiencing both population and income growth, fuelling consumer spending and reinforcing Oxford’s conviction in the resilience and growth potential of the properties. 

The acquisitions position Oxford into a sector that has been both durable through a range of economic conditions, and buoyed by a lack of supply.

“By acquiring these retail centres, 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,” Bhatt said in the announcement.

Although the U.S. retail sector is new for Oxford, the investor has experience both in the market and internationally within the retail segment. Oxford has an existing presence in the residential and industrial sectors in the Austin area. 

It also builds on Oxford’s established global retail business that spans nearly 10 million square feet and represents approximately $8.8 billion in assets under management. Oxford’s retail properties are visited by over 100 million people annually from across the globe. 

This includes flagship retail assets in the Greater Toronto Area which consistently rank as continental and national market leaders, according to the International Council of Shopping Centers (ICSC).

A 'high-quality, high-growth' market

Pine Tree will operate the centres. It has a 30-year track record of investing in, managing and creating value across a diverse portfolio of U.S. retail assets through multiple market cycles.

“Wolf Ranch and Lakeline represent the type of high-quality, high-growth market retail investments we continue to target nationwide,” said Will Davis, VP, investments at Pine Tree, in the announcement. 

“We’re excited to enter the Austin market with Oxford Properties as our partner and look forward to building on this new relationship.”

The transaction was brokered by Kyle Minter and Conor Lalor of Newmark.

About Oxford Properties Group

Oxford Properties Group is a global real estate investor, developer and manager. 

Established in 1960 and based in Toronto, Oxford and its portfolio companies manage approximately C$84 billion of assets across four continents on behalf of their investment partners. Oxford's owned portfolio encompasses logistics, office, retail, multifamily residential, life sciences, credit and hotels. 

A thematic investor with a committed source of capital, Oxford invests in properties, portfolios, development sites, debt, securities and real estate businesses across the risk-reward spectrum. Together with its portfolio companies, Oxford is one of the world's most active developers with 30 projects underway globally across all major asset classes.

Oxford is owned by OMERS, the Canadian defined benefit pension plan for Ontario's municipal employees.